De-regulation of the banking and mortgage industries contributed, but will gov't guidelines be what gets the job done now?
I'm doubtful about the abilities of who is steering the helm of financial recovery.
Politics might not peacefully co-exist with what it's going to take to get recover going. Banks are going to fight to survive to see who's going to come out the other side as the new market leader. They don't have to get re-elected, they want profits now and in the future.
People can send a powerful messageTODAY!. No government policy needed.
Stop doing business with the banks involved and see how fast they change their policies.
Imagine a mass closure of accounts at Bank of America? How long do you think it would take to get the attention of the right people.
There are foreclosure laws and procedures that vary state by state, and the banks are already subject to following those laws and procedures, the current debaucle isn't about there being a lack of rules, but rather, policing the culprits who break the rules already in place. The new HAFA short sale procedures are a step in the right direction as now the vast majority of servicers are signatory to the contract that obligates them to pursue HAFA short sale alternatives - BUT and it's a big BUT, the investors of those loans are in no way obligated to agree. Nor should they be - as helpful as it would seem - for to force them to would undermine our free market capital system and inch us dangerously towards Socialism. My forefathers didn't fight and die so we could become a nation of Socialists. IMHO