Ian Welsh has had quite a lot to say lately that's worth listening to. (This on Afghanistan is itself worth a click.) But I'd like to focus on a theme we both share — are we ruled by law or ruled by men?
I won't re-create his piece (please read for yourself), but he does a fine job of connecting the fraudulent mortgage foreclosure mess with Bush-era crimes and their non-prosecution:
This is a logical consequence of refusing to go after banksters for fraud. The fraud was so systemic (the majority of CDOs based on housing) that virtually every major executive was involved. The DOJ and others chose not to prosecute criminally, and as a result the message was sent that the executive class, as a group, will not be prosecuted for fraud.First the political elites skate; then the corporate elites. The result, in Welsh's view, is that we're fast-morphing into a nation ruled by men, not laws. He believes the decay can be stopped, but only via criminal prosecution — an actual option in states with actual Attorneys General.
So, of course, they doubled down.
But if that fails, his predicted next step is chilling: "Deficiency judgements: going after people for the amount that’s underwater." Check it out. (Oops, here's Masaccio's post–Face the Nation take. Ugh.)
By the way, Chris in Paris has been all over the fraudulent foreclosure story — here, here, here, and here. Stay tuned; this is far from over.
GP
