David Skeel of Penn Law School has a good piece in today’s Wall Street Journal and Todd Zywicki of George Mason Law School in this week’s Forbes as both have good reviews of the recent well-publicized mortgage settlement. David points out that (picky-picky) there does not seem to be much of a connection between the settlement and any underlying analysis of the facts and that the government-led extractors “treated the case as an opportunity for photo-ops and high-level negotiations.” Todd focuses his analysis on the likelihood that this is merely an initial installment of such extortive agreements which will lead to continued uncertainty in the mortgage market. All of this leads to the conclusion that we are far away from any type of free banking world where the mortgage market is allowed to fall back into balance, a point I made on the Dylan Ratigan Show a few weeks ago with particular emphasis on winding down Fannie Mae and Freddie Mac.
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