HoodaThunk?

Mental wanderings of a common man.

Cities suing lenders over foreclosures; academic reaction symptomatic of our nation’s problem

In my USAToday (thank you, Hilton Hotels) there’s a story about the beginning salvos of what might be a municipal bombardment of lawsuits against lending institutions over the foreclosures that are hitting certain members of the public. I’m no fan of people losing their homes and I do believe, strongly, that there were certain of these lenders who played very fast and extremely loose with the facts in order to put some people into loans that were way, way over their heads. But if that’s the case, then it’s a matter of fraud; fraud perpetrated by those individuals against their companies and, possibly, their customers. It is not a matter of a crime against the citizenry of this nation. I don’t want to see anyone ruined over their having taken the terms of a loan they were assured they qualified for, but the government isn’t exactly the most precise instrument to be poking our economy with.

What got me about the story was this set of paragraphs:

“Hundreds of cities across the United States are in the same position,” says Greg Squires, a professor of sociology at George Washington University who studies urban redevelopment. “I think there will be more lawsuits. If we get an early decision in one of these cases, it will either encourage or discourage” other cities from filing suit.

Alan Mallach, a senior fellow at the National Housing Institute, says the lawsuits are “a bit of a reach under the laws of most states, but … a creative court could reasonably make some law in that direction.”

Emphasis mine. So, this senior fellow at some think tank thinks the proper provenance of the creation of law should be the courts? That it’s “reasonable” for the courts to be making the law as they go, subject to their personal whim and completely unaccountable to We, the People? Clearly, he does, and that’s the real source of our problems, domestically, today. For a bunch of people who allegedly pride ourselves on being members of a democracy, we’ve sure got a lot of allegedly smart people who think the populace is just too stupid to elect representation to pass laws in our stead.

Perhaps Mr. Mallach would like to propose what he thinks the law should read and then do what you’re supposed to do in a democracy: put it to a vote.

16 May, 2008 - Posted by Ric James | Academia, Law, Politics | | No Comments

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