With slick logic another swindle is promoted.Let my beloved come to his garden
And eat its pleasant fruits.
—Song of Solomon
* * * * *
"Leave housing to market forces, let prices fall until buyers are motivated to come in, and hope that the economy can stand one final cathartic wave to clear the excesses of the bubble." This according to L.A. Times columnist Tom Petruno in a story published on August 28, 2010, might be a better alternative to government programs aimed at helping homeowners who are underwater...
Petruno says, "Over the last two years, federal attempts to help brake the housing market's plunge have been monumental, of course" (emphasis added—ed.) Try lilliputian, Tom. If they were "monumental," then the sanctity of contracts whose existence largely was the result of a massive fraud committed against unsuspecting souls who foolishly believed regulatory bodies actually were doing their jobs would have been a matter already adjudicated and equitably resolved, or well on the way to being so. There has been no such effort. Anyone supposing "market forces" might better be left the housing bubble's final arbiter while fraud committed blowing that bubble is left unchecked should be seen advocating for another huge bailout of banks, not homeowners. Hoping that the economy can stand one final cathartic wave to clear the excesses of the bubble is laughable. Chaos will be the outcome, and if 2008 is any indication, failed enterprises will be the biggest beneficiaries.
—Tom Chechatka
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