'Seizures May Be Cities’ Last Hope in Mortgage Crisis'

We should let the banks fail before we interfere with contractual rights any further.

the constitution, sanctity of contract and rule of law is what allows out govt to be built.

Obama did not build that govt and no one else did without the constitution, the rule of law and sanctity of contract.

his bullshit with the gm bondholders was bad enough.

 

You didn't answer his question.

 

Ricter the Riddler answers a question with another question.

Whack a Mole is more like it.

 

I fail to see where this solution fixes anything.

 

ob·tuse
   
adjective

1. not quick or alert in perception, feeling, or intellect; not sensitive or observant; dull.

2. not sharp, acute, or pointed; blunt in form.

3. (of a leaf, petal, etc.) rounded at the extremity.

4. indistinctly felt or perceived, as pain or sound

 

Absolutely unless we want to become like the 3rd world economies.

I think hernando desoto touched peripherally on this in his book
the mystery of capital
http://www.demographia.com/bk-desoto.htm

 

And it got Andy Dufresne a month in solitary for using it...

BUT it was spot on then and it's spot on now...

 

I don't disagree with either you or Jem BUT didn't we already start down the path of a "3rd world economy" in 2008...and don't we just continue down that path with each iteration of "quant easing"?

It's absolutely staggering how much credit origination transfered from the private sector to the public sector in the last 4 years.

 

People around the world, including the US, are (effectively) paying our government to borrow their money. So states and cities could create some "workfare" (and legit infrastructure) projects and take very low interest loans from the federal government to fund them, or simply take (demand?) more outright transfer payments, and the cities could be saved without reneging on grandma.

 

Ken Bentsen, the executive vice president of the Securities Industry and Financial Markets Association, said the idea would almost certainly be challenged in court and would have a major impact on the local market.

“If the government has the ability to abrogate the contract at will and at the expense of the bond holder, the investor is going to do one of two things: require a tremendous premium for the risk they are incurring, or just not invest at all,” Mr. Bentsen said. “It would be a risk factor that would be impossible to underwrite.”