This is an act of theft, grand larceny sanctioned and supported fully by the state.
Notice of course the word “impose”. Does anything better describe the leviathan state than this word?
But supporters acknowledge the California Foreclosure Prevention Act won’t stop thousands of foreclosures from eventually happening.
It’s already next to impossible to do business in California, given the high taxation, onerous regulation, and generally unfriendly attitude of government at all levels towards businesses. All this will do is increase banks reluctance to lend to California residents. And why should they, when they know at any time the state will intervene and steal their property.
Banks lent money (although I do confess, they were lending fake money that the Fed created out of thin air) with the intentions of being repaid. Borrowers took out loans ostensibly with the promise to repay. If the banks made bad loans, they lose. If the borrowers cannot repay their loans, many of which were far larger than they should have taken, then they lose. Someone will come along and purchase the house for what is the real market value, whatever it might be.
Those who would and could buy the home at a real price lose. Those Californians that desire to buy a home in the future will have a much harder time finding lenders. New capital is being diverted to “save” older, poorer investment. The state is literally stealing the wealth of others.
This entry was posted on Wednesday, June 17th, 2009 at 5:18 pm and is filed under Economics, Politics.	You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.