The Banks are holding communities hostage across America by trying to freeze the value of mortgages in time in order to protect the trillions of dollars in securitized mortgage paper and cascading investments built off them. You tamper with the Mortgage, you adversely affect all the other investments. So the Banking industry, refusing to take the loss on the real estate portfolios have turned the real estate market into a petrified forest, to the detriment of consumers and communities alike. The real estate prices the Banks and Wall Street need to come back to preserve their investments won't be coming back for they were fraudulently inflated to begin with (the concept of house flipping being one method of leveraging real estate values, for bigger mortgages, that could be transmuted into larger amounts of securitized investment paper).
The Eminent Domain approach, removing the bank as the middle man in the real estate process, will keep people in their homes, provide more opportunities for people to buy homes at realistic prices, and allow communities, like San Bernadino, to reconstruct their tax base.
Fantastic idea.
Read the Article at HuffingtonPost
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