In case you wonder what's ahead for those neighborhoods most affected by mortgage defaults and potential defaults linked to declining housing prices, take a look at what 60 Minutes published last Sunday. The Next Shock.
This suggests that armies of attorneys may be needed to clean up corrupted titles with false documentation for years to come. Think of all the collateral damage to consumer and business activities dependent on a healthy real estate market.
Does anyone think big banks are going to pay for the damage done in order to make more money? After all, they were given billions in public assistance to fix the financial crisis on Wall Street and billions more in local public expenditures to clean up the housing and neighborhoods destroyed as a result of debt collection and servicing practices. Why should there be any expectation that their principal officers will be held liable for anything?
Does anyone doubt that lawyers are complicit in the design and defense of business models that flout laws and regulations for greater profits? Based on the effectiveness of legislators and regulators so far, is there any reason now to bet money on an effective remedy from Washington, Wall Street or Columbus in the foreseeable future?
Perhaps it would be best to focus on local responses from places like Cleveland where people have the grit to fight back.