The report from The New York Times on Wednesday about the foreclosure settlement reached between five big banks and 49 states’ attorneys general made it appear that justice was being served. The $26 billion to be paid out to some 2 million homeowners (former and current) “could provide relief” to them under the terms of the settlement. It would also remove a cloud of uncertainty from the banks’ liability and might help in “halting the housing market’s downward slide.”
San Francisco, as even casual observers of the political scene know, is one of the most liberal cities in the country. Many of its citizens fear big business — but not big government — and speak lovingly of locally owned small businesses. Its Mayor, Edwin M. Lee, recently announced a $1.5-million fund to assist small businesses.
Freddie Mac has again entered the spotlight as a new report claims the government-sponsored enterprise betrayed American homeowners after placing multibillion-dollar bets that will pay off if homeowners remain shackled by costly mortgages with interest rates well above current rates. In a scathing new revelation of their investigation, National Public Radio (NPR) and ProPublica, an independent investigative news service, uncovered multibillion-dollar investments made by Freddie in late 2010 that will pay off only if homeowners remain trapped in high-interest mortgages.
Central banks are often justified on the basis that a complex, modern economy requires top-down management by experts. These people, it is said, can study the markets and then “fine-tune” the economy to keep it humming along.
On the morning of August 3, 2011, armed agents of the U.S. government and the Los Angeles County Sheriff’s Office conducted a raid on a small private club in southern California, seizing the substances being sold therein and arresting three individuals on felony charges. It was the second raid on the club in two years and the culmination of a yearlong investigation by 10 local, state, and federal agencies that, according to the Los Angeles Times, “used high-tech video equipment hidden on a utility pole for round-the-clock surveillance and undercover agents to make covert buys.”