The Housing Vultures | by Francesca Mari – The New York Review of Books

Homewreckers: How a Gang of Wall Street Kingpins, Hedge Fund Magnates, Crooked Banks, and Vulture Capitalists Suckered Millions Out of Their Homes and Demolished the American Dream

by Aaron Glantz

Custom House, 398 pp., $27.99

David McNew/Getty Images A deteriorating bank-owned house, Moreno Valley, California, August 2008

“They control the people through the people’s own money.”
—Louis Brandeis

1.

In an alternate reality, the one progressives wanted, the government wouldn’t have bailed out the banks during the 2008 crash. When mortgage-backed securities began catching flame like newspaper under logs, the government would have prioritized struggling homeowners instead. It would have created a corporation to buy back the distressed mortgages and then worked to refinance those mortgages—lowering monthly payments to reflect the real underlying values of the homes or adding years to the mortgages to make the monthly payments more manageable. If a homeowner missed mortgage payments, rather than initiating a

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