[ModelBreaker]

Nothing good can come of this.

There is clearly a serious issue on the chain of title for mortgage holders. But Holder will end up changing it into an evil mortgage holders issue and demagogue the whole thing—he will hold out the possibility that folks will get their homes for free.

If he does this, it will make it very difficult to solve the real problem. And it’s very important that it be solved. If mortgagors become unable to foreclose, the whole shebang will come down fast and make the great depression look like a bed of roses.

I expect cooler heads to prevail—even in this administration. Obama’s economic team has been bad but they are not so stupid that they cannot see the consequences of removing a substantial part of the security that every bank and financial institution in the world relies on for solvency and a substantial part of the security on which the CDS’s still depend. There’s not enough money, even in Obama’s fantasy world, for the government to FDIC all the banks in the US.

[goodnesswins]

Progressives/liberals do NOT “solve problems”....they make problems....so they have something to DO...and collect taxes for....

[cashless]

I agree. All the homes in foreclosure now will be given immunity until a decision is made and of course the MSM will find the most absolute worthless piece of human debris who had no business with a mortgage in the first place, and put their sob story on the tube so all the bleeding heart liberals and progressives can have a cry fest. Looks like Bwraney Fwrank will get votes for the RATS after all and will hold this over the mortgagee heads for the next few years until they have trashed the house beyond repair and want another free one.

[reaganaut1]

I agree with your comments. Regardless of deficiencies in mortgage paperwork, banks are not foreclosing on people who are paying their mortgages.

[BoringGuy]

...they are not so stupid that they cannot see the consequences of removing a substantial part of the security that every bank and financial institution in the world relies on for solvency...

After what happened to the secured bondholders at GM and Chrysler I'm not so sure.