The economy is unlikely to return to full health so long as we are ruled by greedy thieves:
[T]here is a virtue in Monday’s $8.5 billion settlement between federal regulators and 10 giant banks over foreclosure practices. At least the regulators admit that most of the people due to receive compensation were never victimized.
To be exact, the staff of the Office of the Comptroller of the Currency (OCC) told reporters on a Monday conference call that, according to the agency’s review of a random sample of the affected borrowers, a mere 6.5% suffered financial harm at the hands of banks. Yet 100% will receive compensation, though many of them never lost their houses [and virtually all of them were “seriously delinquent” on their mortgages].
We’ve certainly seen cases where undeserving parties abuse a system set up to compensate legitimate victims. But we can’t recall a compensation scheme designed to send most of the checks to people who don’t deserve them. Not that this bothers much of the press corps. On Monday’s call, several of our media brethren followed up with questions on why banks weren’t required to pay even more. After all, many of the non-victims will only receive a few hundred dollars.
This is because “mainstream” journalists belong to the same mob of looters that infests the White House. Obama was placed in power to feed the pathological greed that serves them as a value system.
Liberals will salve whatever vestigial remnants of conscience they may have by pretending they are only stealing on behalf of others, as if that were somehow moral. However, by doing so they are using the stolen money to buy political power for themselves and their cause.
The pretext for this particular smash and grab:
This latest settlement grew out of something called the Independent Foreclosure Review, demanded by the OCC, the Federal Reserve and other regulators following 2011 enforcement actions against the nation’s largest servicers of residential mortgages. Those enforcement actions followed the “robo-signing” scandal. This was the episode in which politicians and the press pretended that minor paperwork errors in the process of foreclosing on borrowers who hadn’t paid their bills constituted major crimes.
It was federal meddling in the mortgage industry that caused the 2008 financial crisis. At least bureaucrats learn from the disasters they cause. They apply the lessons to create more disasters, knowing that the economy’s sickness is the health of the redistributive state.
On a tip from Ghost of FA Hayek. Hat tip: The Lonely Conservative.