The austerity of 200,000 Greeks with no income or property at the hands of their government as condition for the IMF and ESFS to release tranches of money in October so the government can promptly make payment of interest to banks without any left in the till for November is modest in comparison to mortgage events brewing in the US.
Of the 55 million residential mortgages outstanding in the US (plus or minus) over 10 million are on properties for which the mortgage exceeds the value of the property, or, in less flattering terms, the mortgage is underwater.
The State of California accounts for 2 of the 10 million mortgages with an unemployment rate exceeding 12%, officially. California, other states, and the federal government seek $20 billion in damages from banks for lending abuses that include short cuts in the foreclosure process since 2008.
California walked away from the talks yesterday because the banks request for a "broad release of claims" was unacceptable. What could that release request be and is it coincident to the retaining of criminal counsel by the Goldman CEO last month?
California Quits States’ Talks With Banks on Mortgages - NYTimes.com
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