The Third Way is a group of the usual Blue Dog suspects who believe in presenting a less-partisan face with the same old corporate-friendly solutions to the massive problems presented by Big Shitpile.
In light of last week’s mortgage foreclosure-fraud ruling in Massachusetts, Third Way has come up with a plan, and you’ll never guess what they suggest now!
You should go read all of what Marcy says, but here’s the summation:
The consequences the Third Way believes are adequate for bankster trying to take property they don’t have legal standing to take, resorting to legal fraud to do so, involves an Attorney Generals’ investigation that itself says will include no criminal charges, disbarment no one expects to happen, and the loss of business.
But nowhere does the Third Way envision the banksters will have to take a financial hit on the value of these loans, much less any legal consequences for fraud. Now, ultimately, the former may well be negotiated by the Attorneys General. But the Bill Daley-connected Third Way seems to see the Ibanez decision as a moment to offer pseudo-solutions that are not only inadequate, but stop short of what would otherwise come out of the Attorneys General “investigation.”
In short, this seems like an admission by the Third Way that the shitpile remains a serious problem. But also an attempt to preempt processes already underway to solve the shitpile. Not to mention eliminate legal recourse for many of the people who have been wronged here.
Update: The more I think about this paper, the more it seems like Third Way is saying, “Congress, we’ve had a major setback in the courts. Can you please make sure to 1) limit access to the courts and 2) preventing any more of these judgments that will reveal just how deep the shitpile really is?”
I’ll bet you dollars to donuts that’s exactly what happens. I guarantee there will be legislation passed that will completely protect the banks from the consequences of their own actions — and allow no significant retribution, legal or financial, for the aggrieved homeowners.