Will There Be An Investor Uprising?

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The Senate Banking Committee met today to hold hearings about the foreclosure fraud crisis. MarketWatch has a brief summary here. After it was over, Dave Dayen, Atrios, and Mike Konczal (rortybomb) chatted on Twitter:

ddayen: It’s a national crime that this foreclosure fraud hearing won’t lead the nightly news

ddayen: hearing ending, yes these things are a lot of hot air, but I think this one might have done some good

Atrios: what possible good? nice that maybe some senators get it, but… then what?

ddayen: point is that this has gone from a backwater on blogs to the chair of Senate Banking saying this is a crisis. Baby steps

Atrios: yes that’s progess but..Treasury unlikely to do anything and of course congress is useless

ddayen: Congress is useless but investors, AGs not necessarily. Investors watched this hearing and $ signs lit up in their eyes

Atrios: true, long thought that the only slim hope for this mess was investor uprising

rortybomb: You only need a little bit of successful investor uprising to put ratings agencies into motion, which sends whole thing collapsing.

Atrios: true, tho i think problem with investor uprising solution is that many investors are on both sides of this

rortybomb: You could also have an investor uprising which doesn’t really help homeowners/communities at all. That’s a worry.

Atrios: yes i agree with that, investor uprising no guarantee of helping homeowners. just slim possibility

ddayen: That is a worry, but there are a combination of pressures here, particularly from courts denying foreclosures….pt. being, a multi-pronged attack w/courts, investors, munis and AGs, could get the banks to a homeowner-friendly endgame

So will investors who bought securities backed by fraudulent mortgages lead a revolution against the banks who sold them? Maybe! Though probably not. In any case, I just thought everyone might enjoy eavesdropping on the postgame show a bit.

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REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

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