There goes the neighborhood

To understand what is so inherently wrong with the way Banks are foreclosing on PPL is captured in this short segment of the piece. It's a "scorched earth" approach in a situation where BOTH sides contributed to the situation, and BOTH are being hurt by the collateral damage. But on the 'Avg Joe' level it's more severe, because unemployment/welfare is a far cry from a bailout package, that keeps BIG business SOLVENT/PROFITABLE. It's like comparing being rescued by an ocean liner, to someone hanging on to a life saver.

The banks are proceeding with foreclosures, instead of modifying these loans. I understand, business is business, but after foreclosing and plummeting the value of the surrounding homes (collateral damage) they aren't even maintaining the homes, they just abandon them. Then vagrants come in and gut the home of all it's valuables, further devastating the value of surrounding homes.

The City has resorted to demolishing the homes in order to prevent neighborhoods from becoming unattractive, spending millions in tax dollars in the process. IJS.. Wouldn't it be BETTER for America to keep those PPL in their homes? Isn't it BETTER for the community? Isn't it BETTER for the Banks to recover 50-75% of that mortgage, instead of losing the property all together? Isn't it better for the community to have tax property contributors, as opposed to Section 8 housing? That's the 'dog eat dog' approach I have with our current state of business as usual.

This approach will wind up destroying otherwise stable households. And it makes NO sense at all. Like they said in the video, it was the borrowers, the Banks, the politicians, the appraisers everyone who contributed to the culture of "Greed", that was made possible by deregulating or a lack thereof. Capitalism isn't the culprit, a manipulation of the rules, exacerbated by GREED is. It's a 'Race to the BOTTOM' that will eventually CONSUME "US" ALL...







Source: http://www.cbsnews.com/video/watch/?id=7392084n&tag=cbsnewsMainColumnArea.2