Re:Richmond’s rules: Why one California town is keeping Wall...
by nl on Sunday October 06, 2013 @07:28AM
(#6503768)
I think the analogy "the nuclear option" is unfortunate. But if you remember the cold war, "the nuclear option" always was that: a real, actual option. Warsaw Pact forces in East Germany were far stronger than NATO forces, but they knew NATO policy was to use tactical nukes in the event of an invasion.
From the mortgaged home-occupant point of view, the banks have all the power here. Government power is the only thing they fear, but government power is a fairly blunt stick - governments generally don't intervene in individual cases and have to attempt a systematic solution, and so far it has been very ineffective.
In this case the mere threat of government intervention that will actually help consumers may be enough to change bank policies (if not in Richmond, perhaps elsewhere). I see that as a positive thing, and one that will help correct a distortion in the market.
From the mortgaged home-occupant point of view, the banks have all the power here. Government power is the only thing they fear, but government power is a fairly blunt stick - governments generally don't intervene in individual cases and have to attempt a systematic solution, and so far it has been very ineffective.
In this case the mere threat of government intervention that will actually help consumers may be enough to change bank policies (if not in Richmond, perhaps elsewhere). I see that as a positive thing, and one that will help correct a distortion in the market.