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?


rolub said...

and now Cleveland City Council members are trying to do the same! (I think... the article gives as little details as possible).

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