
From an Unlikely Source, a Serious Challenge to Wall Street - rosser
http://www.rollingstone.com/politics/blogs/taibblog/from-an-unlikely-source-a-serious-challenge-to-wall-street-20120720
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noonespecial
I'm not quite sure how this works. So the house is seized via eminent(1)
domain and the low fair market prince is paid. Is this not paid to the owner,
who then still owes the bank the extra he overpaid for the house during the
bubble? How will it help that the government sells back the house him at the
new market rate if he's still bankrupted trying to settle the old loan? It
seems to me this just makes it all worse by bankrupting everyone who's
underwater all at once.

(1)eminent = everywhere (our domain is everywhere), imminent = ready to take
place.

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antidoh
"Here’s how it works: MRP helps raise the capital a town or a county would
need to essentially “buy” seized home loans from the banks and the bondholders
(remember, to use eminent domain to seize property, governments must give the
owners “reasonable compensation,” often interpreted as fair current market
value)."

The government is seizing the _loan_.

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DamnYuppie
While I am not a big fan of how imminent domain has been used in the past this
idea actually seems, at first glance, to be a creative use of it to do an end
around the big banks.

I am skeptical but, at the same time, hopeful this plan can work and isn't
just another way for financiers to screw over the average joe. I guess that
goes to show how little trust I have in banks and public officials :(

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pasbesoin
Ownership is -- remains -- a social contract. Push it too far, and society
will break the contract. Put simply, you'll no longer be seen to be acting in
society's interest, which is about where your ownership -- absent the ability
to muster brute force -- ends.

