tag:blogger.com,1999:blog-3098264341625381422.post9021476679445399957..comments2024-03-18T17:01:07.165-07:00Comments on The Provocateur: The Demonization of Free Marketsmike volpehttp://www.blogger.com/profile/02999118519606254362noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3098264341625381422.post-23022845604981835742009-01-17T18:52:00.000-08:002009-01-17T18:52:00.000-08:00Taking away the modification ability of the judges...Taking away the modification ability of the judges back in 1978 is what led to the mortgage abuses to begin, the lenders had NO risk of modification. So the financial industry was able to feed on the mortgage industry by creating SIVs.<BR/><BR/>I quote from the above article: "Allowing a judge to modify loans gets around the problem that many mortgages have been turned into securities and sold to multiple investors. "The bankruptcy system depends on people making deals, but the deal-making piece of it has disappeared when it comes to mortgages because of the way mortgages were sold and packaged," Judge Bufford said. "There's nobody on the lender side to do the deal unless you [get permission] from investors, and that's impossible."<BR/><BR/>Changing the bankruptcy laws to allow the modification is a beginning to bringing "RISK" back into the market and not just passing it along to the taxpayer.Anonymousnoreply@blogger.com