Post #4095092
2026-07-25 10:46 UTC
Foreclosure and eviction became official policy: Treasury Secretary Timothy Geithner told Obama that a wave of foreclosures was necessary to "foam the runways" for the banks, so Obama encouraged banks to foreclose on their loans, rather than restructuring them so that Americans could keep their homes:
https://wallstreetonparade.com/2012/08/how-treasury-secretary-geithner-foamed-the-runways-with-childrens-shattered-lives/
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Replies (1)
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@pluralistic@mamot.fr 2026-07-25 10:47
But even with these foreclosures, lenders and their customers lost hundreds of billions on the subprime crisis. That's because all that subprime lending pushed the price of houses up and up and up, so when the market collapsed, those mortgages were "underwater" - the money from selling the foreclosed homes didn't cover their outstanding loans. 13/