Well, You Can't Expect the Rich to Eat Themselves
July 9, 2010 11:47 AM Subscribe
posted by saulgoodman (131 comments total)
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There's been plenty of politically partisan debate about who or what ultimately caused the real estate crash that triggered the recent US financial crisis. One popular view blames "the Democrats and their efforts to expand homeownership to people who, in some cases, may not have been quite ready for it."
But contrary to this view, new data strongly suggests that throughout the real estate collapse, the rich have actually been defaulting on mortgages for strategic reasons at much higher rates than the huddled masses
Perhaps it's not such a surprise, then, that new data also shows the rich in the US are still getting richer even as the rest of us watch our share of the economic pie continue to shrink
But luckily for the rich, the American electorate seems to hold no lingering resentment against them, as evidenced by the fact that even the economically hard hit state of Florida (which along with California, Nevada and a few others, led the real estate collapse) seems poised to elect both newcomer Democratic senate candidate, Jeff Greene, a self-financing billionaire who cashed in on the real estate crash by betting against the Florida real estate market
, and newcomer Republican gubenatorial candidate and scandal-plagued former health care industry CEO, Rick Scotts
, another self-financing billionaire who (borrowing a page from the playbook of the wealthy self-financing candidates in the Arizona public financing case discussed previously here on the blue
) recently filed suit against the state of Florida to block Florida's public campaign financing system from providing matching funds to his less wealthy electoral rivals on free speech grounds
Still poorly understood and little examined is the role large-scale, systematic mortgage fraud in loosely regulated states like Florida
may have played in accelerating or exacerbating the real estate collapse.
Also related previously here