Slow Legal System vs Fast-Paced Modern Finance
Tuesday, October 19, 2010, 11:56 AM | 1 Comment
We all know by now the housing market fiasco in terms of foreclosures and the ultimate bankruptcies. Some experts say the problem has created two challenges: Technical and Legal. In essence, the slower U.S. legal system is no match for the fast-paced modern finance. The court system gives everybody the chance for due process which can take months if not years.
The modern finance system, on the other hand, demands efficiency, swift action and in turn maximum profits for the financial institutions. The proof of its efficiency has been carved on the hard and inflexible surface of the process of recent fast foreclosure on mortgages without giving the home owners due process.
Both systems are colliding head-on in the residential real estate with no insurance whatsoever on either side to help the consumers. The purpose of insurance is mainly to protect the innocent consumers but the protection comes down the pipes very slowly.
However, the U.S. follows the efficiency in maximizing profits due to the capitalistic nature of the economy. Somehow, somewhere along the line, somebody forgot to protect the consumers. Instead, the pockets of the big guns have been filled on the back of the miseries of the consumers.
I strongly believe in open and free market. But without proper regulations to protect the mostly poorly informed innocent consumers, the foreclosure debacle and other such “modern” finance works of art will keep going on in the name of efficiency.
Both systems are becoming a growing issue as lenders come under attack for taking short cuts to oust homeowners who haven’t mailed in a mortgage check. Because of the slower nature of the U.S. legal system – and for that matter any legal system in the world – the solution to the consumers’ miseries will be hard to come by soon.
Media report…
Some banks have temporarily suspended foreclosure sales as they review procedures, while others have said they are reviewing files but haven’t promised to freeze foreclosures. But even here, bankers are having trouble slamming on the brakes.
Banks still are referring some loans to foreclosure in states where they issued suspensions, despite the foreclosure moratorium.
The legal system, just by its nature, cannot act swiftly and protect the innocent. The “modern” finance system, just by its nature, will keep filling its pockets by acting swiftly to create misery in the landscape of the mainly unprotected innocent.
In a Nutshell
It seems almost impossible the two systems come together to protect the innocent. Unless the legal system acts swiftly and the modern finance system acts slowly to give the innocent the chance of due process, I don’t see “no way” out of this fiasco or debacle that has been going on for some time.
One Response to “Slow Legal System vs Fast-Paced Modern Finance”
By roclafamilia on Oct 21, 2010, 9:28 am | Reply
Helpful blog, bookmarked the website with hopes to read more!