Friday, June 06, 2008
Variable rate...contract enforcement
TPS regular Thomas Johnson sends along this article from WSJ; a rogue sheriff is starting to take the law into his own hands by neglecting his duty to hold court-ordered foreclosure auctions.
This is a very bad precedent to set; the only reason there isn't an uproar is that his decision to stall default auctions favors those with a face in the matter and harms the impersonal lending companies. But property rights are property rights, and contracts are contracts-- if the struggling airline companies decided to stall paychecks for a month, how would
What does this do to the incentive to buy a house in Philadelphia that you might not be able to afford? What does this do to the incentive of lending companies to operate within Philadelphia?