Orwell Watch: Banks Put a Happy Face on Demolishing Foreclosed Homes

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Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Orwell Watch: Banks Put a Happy Face on Demolishing Foreclosed Homes

http://www.nakedcapitalism.com/2011/07/orwell-watch-banks-put-a-happy-fa...

The spin that Bank of America is using to justify the notion of bulldozing buildings is that the houses in question are worth bupkis, say $10,000 or less. There’s a wee omission in their discussion. Many if not most of the houses in question have fallen in value because the bank failed to maintain them on behalf of investors.

...But here is the scam, um, program, via Bloomberg:

Bank of America Corp. (BAC), faced with a glut of foreclosed and abandoned houses it can’t sell, has a new tool to get rid of the most decrepit ones: a bulldozer.

The biggest U.S. mortgage servicer will donate 100 foreclosed houses in the Cleveland area and in some cases contribute to their demolition in partnership with a local agency that manages blighted property. The bank has similar plans in Detroit and Chicago, with more cities to come, and Wells Fargo & Co. (WFC), Citigroup Inc. (C), JPMorgan Chase & Co. (JPM) and Fannie Mae are conducting or considering their own programs…

The lender will pay as much as $7,500 for demolition or $3,500 in areas eligible to receive funds through the federal Neighborhood Stabilization Program. Uses for the land include development, open space and urban farming, according to the statement. Simon declined to say how many foreclosed properties Bank of America holds.

ao's picture
ao
Status: Diamond Member (Offline)
Joined: Feb 4 2009
Posts: 2220
new sources of economic growth

Interesting story JO.  First disaster capitalism, now demolition capitalism.  I shudder to think what's coming next.

In a dystopian society, I can see death capitalism.  Government goon squads start randomly whacking citizens.  Crowding in cities and on highways would be decreased.  Pay-outs to SS, Medicare, and other entitlement programs would be decreased.  The funeral industry would experience a boom.  And supplies of Soylent Green fertilizer and pet food would increase in abundance.  What's not to like?

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
ao wrote: Interesting story
ao wrote:

Interesting story JO.  First disaster capitalism, now demolition capitalism.  I shudder to think what's coming next.

In a dystopian society, I can see death capitalism.  Government goon squads start randomly whacking citizens.  Crowding in cities and on highways would be decreased.  Pay-outs to SS, Medicare, and other entitlement programs would be decreased.  The funeral industry would experience a boom.  And supplies of Soylent Green fertilizer and pet food would increase in abundance.  What's not to like?

And remember it will all be wrapped up in the flag.

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