In yet another sign of the Apocalypse, the rumor is that Obama has finally realized somethings going wrong in housing and he’s prepared to do something about it:
Seize Assets of Investors And Let The Banksters Walk Free!
Oh good God, I can’t wait to hear the sales pitches and talking points on this one….Well at least Florida’s attorney general has her talking points all ready to oppose the MOral Hazard in this deal. From Yves:
Obama’s latest housing market chicanery should come as no surprise. As we discuss below, he will use the State of the Union address to announce a mortgage ” settlement” by Federal regulators, and at least some state attorneys general. It’s yet another gambit designed to generate a campaign talking point while making the underlying problem worse.
The president seems to labor under the misapprehension that crimes by members of the elite must be swept under the rug because prosecuting them would destablize the system. What he misses is that we are well past the point where coverups will work, and they may even blow up before the November elections. If nothing else, his settlement pact has a non-trivial Constitutional problem which the Republicans, if they are smart, will use to undermine the deal and discredit the Administration.
To add insult to injury, Obama is apparently going to present his belated Christmas present to the banking industry as a boon to ordinary citizens. He refused to appoint a real middle class advocate, Elizabeth Warren, to the Consumer Financial Protection Bureau, but he’s not above stealing her talking points.