Crazy. At some point, irreconcilable damage to private property rights and investor confidence will be done, with huge consequences. A hedge fund pressuring a municipality to seize houses at 60-70% of their book value? Retarded. The banks and bond holders will take a massive hit and bankrupt more lenders = seize credit. This predatory, rob-peter-to-pay-paul, cannibalistic capitalism is phucked.
An earlier and better article http://www.rollingstone.com/politic...e-a-serious-challenge-to-wall-street-20120720
not sure how this article is better..i agree with achilles28 and people that post comments on yahoo. SSDD.. the only a difference that now it's coming from hedge funds,not WS..whoa..big difference! how about instead of creating more mess let the old rules work? i don't mind to buy a whole entire street,if the price was right. the problem is that there is too much 'stimulus' BS coming from gvt to the banks and homeowners..let the price fall,let the banks fall,let the markets work and buyers will come. very simple..
^This. Without the integrity of contract law and property rights, we have nothing. Tinkering and fiddling with one of the core axioms of the free market system is nothing short of disastrous. Eminent domain was intended to build roads, bridges - infrastructure of that nature. Not so a bankrupt municipality can seize homes to later flip at a profit. It's outrageous. And it's fucking crazy that a city or county would even consider this. Look how far we've degenerated, as a society.