Hedge fund manager of T2 Partners, Whitney Tilson, would bring us back to reality.
"I'd be very surprised if there were more than 1% of people who were actually kicked out of their homes who were actually current on their payments," he told us.
He explains Foreclosure-gate in one simple sentence.
"What has happened is, some percentage of foreclosures were probably legitimate foreclosures, but the letter of law was not followed because the system wasn't designed to handle the amount of volume of foreclosures that occured, and banks, lawfirms, etc cut corners."
There you go, the scoop from Whitney Tilson - just too many deadbeats who fell behind on their payments and now the banks can't handle the volume.
But the banks are doing nothing wrong, you know - just trying to move the paperwork and foreclosures along.
Except that Tilson is dead wrong about this.
Barry Ritholtz at The Big Picture has been doing tons on the fraudclosure mess and you can see some links here.
The gist is, not following the letter of the law on foreclosures, foreclosing on people who paid cash for their homes, changing the locks on homes and locking people out BEFORE anything has been foreclosed upon is JUST NOT ACCEPTABLE in a land that is NOT a banana republic - property law matters.
Barry Ritholtz destroyed this jive back in October. Watch the last part of the video:
Hedge Fund criminal Whitney Tilson apparently only believes in following the letter of the law when it is in the favor of the banskters and hedge fund criminals like himself.
Property rights only matter when its the bank that owns the property.
I bet he wouldn't feel that way if he came home, found all his stuff strewn all over the lawn and the locks changed because BoA made a mistake on his mortgage.
And include Tilson as a leading education deformer - see his attacks on Diane Ravitch, etc.
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