I saw California Atty. Gen. Kamala Harris on the Larry King show last year debating Dennis Prager about same-sex marriage. She was unimpressive. She didn’t answer questions. She just repeated familiar talking points.
Now she’s a big player in the foreclosure mess. California is one of five states with the highest rates of foreclosures.
Overwhelmed by foreclosures, lenders have been sloppy with their foreclosure processes, leading to a massive state and federal investigation and bargaining to resolve the mess. Banks are expected to be held up for $20 billion.
Banks such as Bank of America are already in shaky financial shape.
Liberal activists want the maximum amount of mortgage relief obtained from the banks and they’re going after California’s attorney general to do more. Read the LA Times story.
What gets me is that nobody who’s made his mortgage payments has been evicted from his home by sloppy foreclosure processes. I don’t see why some innocent paperwork mistakes should cost the banks $20 billion. This feels like political warfare. We’re going to take from the big banks and distribute the funds to bolster our reelection chances.
Who’s going to want to invest in banks with these political witch-hunts? No wonder bank stocks are in the toilet.
And to think that most businesses can invest their funds as they see fit. But not banks. They have to extend loans to politically protected minorities with lousy credit. They have to open branches in crime-ridden parts of town. They have to pay off activist groups like the late ACORN.
One thing that gets me about this LA Times story is that there is not a word from the other side. Not a word from the banks. Not a word from those who worry about the financial stability of banks. Not a word that these political extortions from business are bad for the economy. Not a word of skepticism about these left-wing housing advocates. Not an example of a mortgage-paying home owner who’s been wrongly evicted from his home because of improper bank paperwork procedures. Not a word about the effects on mortgage lending of this type of extortion.
If you make it unprofitable to do business, fewer people will want to do business. Who will want to extend mortgage loans when they see how easily they can be held up for extortion by politicians quibbling about paperwork errors?