War On You: Breaking Alternative News

Here’s thoughts on Danish-style mortgages that expand on what I wrote in note [7] to Saturday’s AEI Subprime Danish: (nearly) Complete Annotated Transcript. I originally drafted a version of the following for some private correspondence, but on reflection thought I’d stretch a point on my “retirement” from active comment to share it with Doomers generally.

In the March 26th seminar, George Soros associate Alan Boyce described (from appoximately minute :06 to :36 in the transcript) his ongoing efforts to introduce Danish mortgage practice into Mexico, and outlined how it might be applied to the United States. Discussants describe with relish (e.g. around 1:36) how under the Danish system defaulting homeowners can have a deficiency judgment on their failed mortgage pursue them for the rest of their lives. One Danish bank president is described (around 1:31) as presently pursuing borrowers who defaulted in the Danish housing bust of 1991.

Strategies for implementing this in the US are also discussed (e.g. around :43, 1:36). The panelists think State level mortgage oversight would never allow for recourse mortgages, but that in the current crisis, federal standards could be forced through. Obviously a revolution in how the US Constitution works as profound as the currents that preceded the events of 1860-4.

The World Bank’s Olivier Hassler speaks (about 1:05 – 1:16) on his experience introducing Danish mortgage practice into Chile, and Boyce describes how his Danish / Soros joint venture is working to penetrate a variety of emerging-economy nations with the idea (around 1:49).

To sum up, it would seem that a lot of banks are looking at intensified control and exploitation of their middle-class customers in the US and beyond as a way to recover some of their recent losses. I find this very disturbing.

A big Doomish thank-you to Patrick, whose link to the Saturday post (with, again, a much better title) did a lot to popularize our new AEI Danish transcript.