Forclosure Mess Could Cost Billions

When it was discovered that banks had been foreclosing homes by getting the foreclosures signed by robo-signers who signed without reading a single word, nobody expected everything to turn out completely fine. Just how damaging will this incident be overall? Investors also wondered so they decided to calculate the cost of the whole mess.

“I don’t see how it can be cleared up in a short period of time,” said Richard X. Bove, an analyst with Rochdale Securities. “The moratorium won’t last that long but the problem will last at least four or five years, maybe a decade.” In the short term, he said, “it could easily cost $1.5 billion per quarter.”

While in a recession, it seems that this is not exactly an effective way to recover. As I mentioned earlier, greed is a force that is steadily corrupting our economy. Big companies pursue wealth by any means necessary while the middle class suffers the consequences. Hopefully this incident will send a message to banks and other big companies that it is important to abide by regulations.