Why Stop at Giving Your Deadbeat Neighbor $2,000 ?

When it was first announced, it was pretty easy to see why the mortgage settlement was easy to hate if you are one of the few Americans who still believes in the sanctity of contract law and personal responsibility.

http://www.nakedcapitalism.com/2012/02/the-top-twelve-reasons-why-you-should-hate-the-mortgage-settlement.html

So, the banksters are off the hook for fraud, forgery, and a plethora of other crimes committed over the last decade...everyone involved gets a Get Out of Jail Free card.



Isn't it wonderful?  Yet another bailout for the big banks, one so easy to spot that even main stream media such as Time magazine calls it "a transfer of wealth from the public at large to the big banks"

http://business.time.com/2012/02/13/is-the-25-billion-foreclosure-settlement-a-stealth-bank-bailout/
Dig a little deeper, however, and it is not just the big banks that are getting off easy - it's a bailout for bankrupt states and government agencies as well!  Is it any wonder your state attorney general sold you down the river cheap?  Not if you consider the following:

http://biggovernment.com/cstreet/2012/02/10/mortgage-settlement-is-a-bailout-for-california/

OK, so no surprise there, California is bankrupt and here's a quick couple billion to let Zombiewood stumble another couple of months down the road.  Why punish the banksters when California can pocket a quick couple billion, close a few more state parks, and survive another quarter before having to issue IOUs again?

In Florida, homeowners are about $110 BILLION underwater, so the $8 billion coming their way will certainly solve the problem in short order.

http://www.bloomberg.com/news/2012-02-10/florida-homeowners-find-little-to-cheer-in-deal-with-gangsters-.html

Thankfully, once that Florida "real estate adviser", whose home 'in the Fieldstone subdivision wasn’t underwater...merely a little lopsided” in the article above gets her $2,000 settlement, she will "spend money again".  I don't know about you, but if my "adviser" told me my account wasn't losing money, it was just a little "lopsided", I'd be filling out transfer forms.

Even better, when the real estate market was first coming unraveled, those of you in the residential real estate industry may remember the US government rushing in to try and desperately keep the bubble inflated with its blunt tool called the Federal Housing Administration (FHA) - by pushing loans out the door with 3.5% down payments and superficial review of borrower credit.  Guess what is happening a short four years later?  The US taxpayer is one year away from bailing out the FHA due to defaulting mortgages.

http://online.wsj.com/article/SB10001424052970204795304577221222265037002.html?mod=WSJ_hp_LEFTWhatsNewsCollection

http://www.cnbc.com/id/46373217

Problem solved.  The dumpster doesn't lie.