Bailing Out Failure

Ignore laws, private property rights, and economic reality on the way to destroying another industry in the name of "fairness". We saw this in the brazenly unlawful GM bailout. It was repeated on a large scale with the bank bailouts. Now this is being exercised in the real estate market. Lawlessness begets more lawlessness.

RICHMOND, Calif. -- A working class San Francisco Bay Area city is considering invoking eminent domain to condemn and seize hundreds of underwater mortgages to help troubled homeowners. The controversial move would be the first of its kind in the country.
In a letter sent to investors Monday, Richmond officials said the city would invoke eminent domain if investors rejected its offer to buy 626 underwater mortgages, the San Francisco Chronicle (http://bit.ly/17fMXuV ) reported.
Eminent domain is generally used to seize private property for public use, such as buying property for a freeway.

Read more: http://www.americanthinker.com/blog/2013/08/bailing_out_failure.html#ixzz2aiB84lBD