So, just what is the “mortgage foreclosure crisis”? One part, as suggested in part 1 of my “High Noon” series of posts on this issue is that the banks have lied in court in order to save money, cut corners, and rapidly foreclose on houses that they may or may not be able to prove they should be able to legally foreclose. Part 1 suggested a political/legal crisis as we decide whether banks have to comply with laws and court procedures or not.
Now before I get into more explanation of the problems and potential risks to the economy from these foreclosure documentation problems, I want to Jon Stewart give a quick overview of the problem. Unfortunately I can’t embed the video here (WordPress.com doesn’t have code for a Daily Show embed) so go here: http://www.thedailyshow.com/watch/thu-october-7-2010/foreclosure-crisis.