Evictions —> Bank Failures?

People are not buying homes in large numbers now. Evictions by banks, thus, diminish their own assets and are causing increasing numbers of bank failures. I have just unloaded a rented two family house where an older woman was dying and the other’s husband was in jail. Neither had been able to pay rent for more than a year. One now is dead and the second has moved in with a sister. I am freed of about $1000.00 a month in expenses.

My experience makes me wonder whether even our largest banks are threatening their own assets through evictions. There are a number of alternatives for them. Turn these homes into rentals. Reduce increasing mortgage rates, help evicted to find alternative homes — the humane things to do. But stupid greed seems to be the name of this game. Grab it while you can. And, of course, many of the abandoned homes are now being trashed.

Krugman’s Op-Ed today tells it as it is: “The moralizers have persuaded many that they should not help friends and neighbors in trouble: ‘How many of you people want to pay for your neighbor’s mortgage that has an extra bathroom and can’t pay their bills?’ That’s the question CNBC’s Rick Santelli famously asked in 2009, in a rant widely credited with giving birth to the Tea Party movement.”

But the consequences of such moralizing are redounding on those who join this mob of Tea Party greedies:

2008–2010 bank failures in the United States
From Wikipedia, the free encyclopedia

“The late 2000s financial crisis led to the failure of a number of banks in the United States. Twenty-five banks failed and were taken over by the Federal Deposit Insurance Corporation (FDIC) in 2008, while 140 failed in 2009.[1] In contrast, in the five years prior to 2008, only 11 banks had failed.[1][2]

http://en.wikipedia.org/wiki/2008%E2%80%932010_bank_failures_in_the_United_States

I hate to guess where all this greedy moralizing is taking our nation. We are failing in educating, stimulating racism and contempt for those in need. And military wars are not the way to go with our 21st. century global economy. Our unions are fading while our corporate CEOs take over the country. But even they may see their assets degrading with our failing economy. I was talking to some bank executives Friday who recommended investing outside of the U.S.

Having been raised by an honest broker, I know that one cannot trust the public reports on corporations which all too often are fudging the facts about their prospects. Who wants to be Enroned?

http://en.wikipedia.org/wiki/Enron_scandal

For now I will keep charge of my assets and not blindly follow the choices of my bankers.

Good luck with the election — looking to be a takeover of our assets with great risk in this greed. China is way ahead of us, lest we forget.

Help!

“A war is just if there is no alternative, and the resort to arms is legitimate if they represent your last hope.” (Livy cited by Machiavelli)

Ed Kent [blind copies]

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