Right up Seedy's alley sticking it to the establishment.
Quote(Newser) – Eminent domain is usually used to seize homes from people, but Richmond, California, in the early hours of this morning gave a tentative green light to a plan that would use it to keep people in their homes. In a contentious 4-3 vote, the city council voted to continue pursuing a plan under which it would offer to buy and modify 624 underwater mortgages from banks—and use eminent domain to seize them if the banks refused, CBS 5 reports. Some 300 residents showed up for the meeting last night, the San Francisco Chronicle reports, with many wearing a yellow or red shirt to signal their stance on the issue.
The council also rejected a proposal to force the investment firm it's partnering with, Mortgage Resolution Partners, to provide insurance against lawsuits from unhappy lenders. Wells Fargo and Deutsche Bank have preemptively sued, in a case that hits court tomorrow. MRP has proposed similar programs elsewhere, but financial industry outrage has prevented it, Reuters explains. But Richmond has an eager Green Party mayor, Gayle McLaughlin, and about half its homeowners are underwater, owing more than their homes are worth. Other towns have also expressed interest in eventually joining in.
http://www.newser.com/story/174091/calif-city-ok-with-seizing-mortgages-from-banks.html?utm_source=part&utm_medium=united&utm_campaign=rss_top
Ah, the Latin American Solution.
:bleeding:
Richmond is a shithole. Don't ever go there. I was once refused service at a Taco Bell because I was white. That happened in Richmond. Also, the only high school I've ever seen with full-prison precautions in place. Mantrap fence to get in, barbed wire all over the place, everything.
Quote from: MadImmortalMan on September 11, 2013, 01:37:34 PM
Richmond is a shithole. Don't ever go there. I was once refused service at a Taco Bell because I was white. That happened in Richmond. Also, the only high school I've ever seen with full-prison precautions in place. Mantrap fence to get in, barbed wire all over the place, everything.
Taco Time > Taco Smell
It's a great idea.
:D
Quote from: MadImmortalMan on September 11, 2013, 01:37:34 PM
Richmond is a shithole. Don't ever go there. I was once refused service at a Taco Bell because I was white. That happened in Richmond. Also, the only high school I've ever seen with full-prison precautions in place. Mantrap fence to get in, barbed wire all over the place, everything.
Seriously, I was lost once and noticed I was driving on highway near Richmond. I kept going before pulling over to figure out where I was.
Quote from: MadImmortalMan on September 11, 2013, 01:37:34 PM
Richmond is a shithole. Don't ever go there. I was once refused service at a Taco Bell because I was white. That happened in Richmond. Also, the only high school I've ever seen with full-prison precautions in place. Mantrap fence to get in, barbed wire all over the place, everything.
Hah, you should have sued the restaurant. Maybe get a few grand out of it, or at least a few sandwiches.
Maybe a free house in Richmond.
Quote from: MadImmortalMan on September 11, 2013, 01:37:34 PM
I was once refused service at a Taco Bell because I was white. That happened in Richmond.
Wrong. I was there. It wasn't because you were white. It was because you weren't driving an import. Creepy ass Chevy.
Black-hatin' Languish aside, this is a fabulous plan. I've been suggesting for years that we use eminent domain to create the command economy we need. This is an important first step.
I hope when the bought judges rule against the council, they do it anyway. NOW LET HIM ENFORCE IT.
I'd like to create a command economy where Ide waits 6 hours in line for shitty toilet paper.
Quote from: Ed Anger on September 11, 2013, 06:35:10 PM
I'd like to create a command economy where Ide waits 6 hours in line for shitty toilet paper.
Shitty toilet paper = previously used toilet paper?
:o
I agree with Ide, broadly.
A bank can break into your house and steal all of your stuff without even leaving a note or you even being a customer of theirs and Yi will defend it. In fact, he has.
Quote from: Ideologue on September 11, 2013, 06:31:46 PM
Black-hatin' Languish aside, this is a fabulous plan. I've been suggesting for years that we use eminent domain to create the command economy we need. This is an important first step.
I hope when the bought judges rule against the council, they do it anyway. NOW LET HIM ENFORCE IT.
See, this is another reason why planned economies like Ide wants won't work. If the plan was put into place, nobody would ever be able to buy a home in Richmond ever again, because nobody would ever give them financing.
What exactly does a bank do with worthless ghetto properties?
Quote from: dps on September 11, 2013, 07:19:46 PM
See, this is another reason why planned economies like Ide wants won't work. If the plan was put into place, nobody would ever be able to buy a home in Richmond ever again, because nobody would ever give them financing.
Why would they need to buy it? The city council could just requisition one for them.
Quote from: dps on September 11, 2013, 07:19:46 PM
Quote from: Ideologue on September 11, 2013, 06:31:46 PM
Black-hatin' Languish aside, this is a fabulous plan. I've been suggesting for years that we use eminent domain to create the command economy we need. This is an important first step.
I hope when the bought judges rule against the council, they do it anyway. NOW LET HIM ENFORCE IT.
See, this is another reason why planned economies like Ide wants won't work. If the plan was put into place, nobody would ever be able to buy a home in Richmond ever again, because nobody would ever give them financing.
In seriousness, yes, if we're going to keep private real property (or at least private banks), it's probably a bad idea to force banks to sell their notes for pennies on the dollar, especially as a general rule.
Nationalizing banks is a no-brainer, though.
Quote from: Ideologue on September 11, 2013, 07:30:53 PM
Quote from: dps on September 11, 2013, 07:19:46 PM
Quote from: Ideologue on September 11, 2013, 06:31:46 PM
Black-hatin' Languish aside, this is a fabulous plan. I've been suggesting for years that we use eminent domain to create the command economy we need. This is an important first step.
I hope when the bought judges rule against the council, they do it anyway. NOW LET HIM ENFORCE IT.
See, this is another reason why planned economies like Ide wants won't work. If the plan was put into place, nobody would ever be able to buy a home in Richmond ever again, because nobody would ever give them financing.
In seriousness, yes, if we're going to keep private real property (or at least private banks), it's probably a bad idea to force banks to sell their notes for pennies on the dollar, especially as a general rule.
Nationalizing banks is a no-brainer, though.
Yep, an idea advocated by the brainless.
Ide needs to wait in line for 8 hours for his Reese Cups.
Saboteurs in the Reese's plant will be shot.
Quote from: Ideologue on September 11, 2013, 07:36:30 PM
Saboteurs in the Reese's plant will be shot.
I love that pic.
:)
Progress at last. :)
Quote from: dps on September 11, 2013, 07:19:46 PM
See, this is another reason why planned economies like Ide wants won't work. If the plan was put into place, nobody would ever be able to buy a home in Richmond ever again, because nobody would ever give them financing.
The people are in negative equity. Either way the bank's are a little fucked and about half the time the mortgage the council wants will be either owned or guaranteed by the state anyway.
Buy the mortgages, restructure or refinance them so that people who can still pay can keep their homes and eventually redeem their mortgages, and in some cases they're able to take advantage of the extraordinarily low-rate of interest.
It'd be better nationwide but aside from that let councils and local banks do it.
On the other hand I've just read about no recourse laws in some states (such as California) which from a British perspective is insane :blink:
Quote from: Sheilbh on September 11, 2013, 08:03:44 PM
Quote from: dps on September 11, 2013, 07:19:46 PM
See, this is another reason why planned economies like Ide wants won't work. If the plan was put into place, nobody would ever be able to buy a home in Richmond ever again, because nobody would ever give them financing.
The people are in negative equity. Either way the bank's are a little fucked and about half the time the mortgage the council wants will be either owned or guaranteed by the state anyway.
Buy the mortgages, restructure or refinance them so that people who can still pay can keep their homes and eventually redeem their mortgages, and in some cases they're able to take advantage of the extraordinarily low-rate of interest.
It'd be better nationwide but aside from that let councils and local banks do it.
On the other hand I've just read about no recourse laws in some states (such as California) which from a British perspective is insane :blink:
Why is it insane?
Quote from: mongers on September 11, 2013, 08:01:27 PM
Progress at last. :)
Sure, if progress means keeping Richmond a terrible place to live.
Quote from: garbon on September 11, 2013, 08:17:32 PM
Quote from: mongers on September 11, 2013, 08:01:27 PM
Progress at last. :)
Sure, if progress means keeping Richmond a terrible place to live.
Indeed, row after row of uninhabited houses worked so well for Detroit.
Quote from: mongers on September 11, 2013, 08:17:00 PM
Why is it insane?
From a British perspective - we've nothing like it and I can't imagine what possible benefit it could bring that would outweigh the costs.
Quote from: Sheilbh on September 11, 2013, 08:23:08 PM
Quote from: mongers on September 11, 2013, 08:17:00 PM
Why is it insane?
From a British perspective - we've nothing like it and I can't imagine what possible benefit it could bring that would outweigh the costs.
The Bill of Rights only applies to the citizen's defense against government. Being protected from corporations or banks in America doesn't increase shareholder value. I mean, duh.
Quote from: CountDeMoney on September 11, 2013, 08:27:01 PM
Quote from: Sheilbh on September 11, 2013, 08:23:08 PM
Quote from: mongers on September 11, 2013, 08:17:00 PM
Why is it insane?
From a British perspective - we've nothing like it and I can't imagine what possible benefit it could bring that would outweigh the costs.
The Bill of Rights only applies to the citizen's defense against government. Being protected from corporations or banks in America doesn't increase shareholder value. I mean, duh.
Didn't we already learn recently that saying "shareholder value" is a weak gloss for what is really being said?
Quote from: Sheilbh on September 11, 2013, 08:23:08 PM
Quote from: mongers on September 11, 2013, 08:17:00 PM
Why is it insane?
From a British perspective - we've nothing like it and I can't imagine what possible benefit it could bring that would outweigh the costs.
A non-recourse mortgage makes it much easier to start anew. There are hundreds of thousands, maybe millions of people in Spain who have been evicted or might be evicted and will still be liable to pay for decades. Seeing their earnings go to the banks only encourages these people not to work or do so illegally, which erodes the tax base and worsens worker conditions.
It also increases the risk banks take, which means higher interest rates and smaller loans. This should alleviate real estate bubbles.