And everyone breathes a sigh of relief as life looks like it’s getting back to normal. But, might I just pose a quote from Iligari at the Automatic Earth?
An interesting issue came to the surface today. With all these governments, spending trillions of dollars of taxpayers’ money, turning into large-scale owners of the banking industries in their countries, can the banks still proceed to foreclose on the homes the taxpayers live in? That would mean people now would have to pay to lose their homes.
Plus, of course, foreclosing is an expensive process for banks. Another cost for the same taxpayer. It gets better: the foreclosed homes would have to be sold, and since that always happens for -much- less than their “paper value”, that brings down the value of neighboring properties even more. In those homes, too, live taxpayers.