For those of you who would like to save what you can of the present economic system and for those of you who are making your plans to enter politics as a reformer, here is an example of the mechanics of what we will be facing as deflation does its agonizing work on asset prices:"Toxic Titles"
...Many community organizations and homeowners have been frustrated by the difficulties of working with mortgage lenders and servicers, and these problems are even more exaggerated in weaker market cities. In the most devastated neighborhoods, some lenders do not even complete the foreclosure process or record the outcome of foreclosure sales because the cost of foreclosing exceeds the value of the property. Anecdotal evidence suggests that these "toxic titles" have placed significant numbers of properties in a difficult state of legal limbo...
CR goes on to point out that "I've seen toxic titles before in downturns with properties listed for $1 and still no takers..."
This is the kind of grubby processing issue that is of huge importance when society gets its collective sh*t together and wakes up to the hard work of either fixing the current system or replacing it with something different. Property rights are key to a stable society and anything that muddies the title to property creates nothing but chaos, confusion and encourages deterioration of the property, squatting and eventually arson and abandonment.
This has been brilliantly illustrated by De Soto in "The Mytery of Capital" and to see the U.S. actually regressing away from clear titles is another marker on the road to economic chaos.
For you would-be reformers, puzzle on this one. When the time is right, when mood shifts to acceptance of hard truths, be ready with a plan - be it a workout plan with the banks to clear the titles in exchange for tax credits or other give-aways or outright seizure of disputed property and forced clearing of titles or some other mechanism. These are the kinds of things you will have to think about when you throw the bums out and get into a position where you can help steer policy. Be aware of where you are in the Wave Count. Don't try to do too much, but be ready with concrete plans when the time is right.