Category Archives: libertarianism

UPDATE IV: Forclosure Fracas (Still About Deadbeats)

Business, Debt, Federal Reserve Bank, Law, libertarianism, Private Property, Reason

Vox Day, friend and fellow (libertarian) rebel on WND.COM, has objected to my comments about his bank foreclosure comments in the BAB post titled “Financial Paperwork Crisis (No Conspiracy Thinking, Please).” Vox and I have been exchanging emails on the topic. Vox traces the arguments back-and-forth in his post “A dialogue with Ilana (UPDATED).”

Consider: You’re a homeowners. You have a mortgage with the bank. The title deed is yours; you have a legal right or title to the property. However, this obtains just as long as you honor your mortgage payments. The bank has a lien on the property until you pay-up the mortgage. If you pay your monthly mortgage installments, and the bank has cashed these payments, your bank account will reflect that. If you’ve met these conditions, and the bank, nevertheless, proceeds to foreclose on you—this is an error, and a legal and statistical anomaly; an outlier case.

It is my understanding that Vox refutes the above; says the latter scenario may be the norm, or could easily become the norm due to endemic fraud.

Distilled, I contend that it is almost always true that a necessary condition for a foreclosure is for the homeowner to have failed to make his mortgage payments. It is my understanding that Vox disputes this.

I told Vox that the one article he referred me to “began with a one-case study as its proof. This is statistically worse than insignificant. The article graduated to assertion. Then added another one-case study.” Vox may well be right, “but the data in the column he provided do not prove his case.

I have since Googled some of the terms Vox deploys in his post. One search led me to the Washington Post’s Ezra Klein. When Ezra does get something right it is only by accident. In any event, the Klein article does not support the Day case (as I understood it), namely that the foreclosed upon are being treated unjustly, even routinely robbed of their property.

Understand: I have no dog in the fracas other than the truth; am quite ready to find for Vox. So far, the hard evidence is missing.

Our debate might be delayed for a while, but it will continue. Stay tuned.

UPDATED I (Oct. 18): Difster’s comment hereunder is mostly waffle unless he is able to address what I wrote in the post: has the homeowner being foreclosed upon been paying his debt or not. He can’t. I really can’t abide argument that doesn’t cleave to reality and evidence. Bring me evidence of all the cases of paid-up homeowners who’ve been foreclosed upon. Present that here, please.

UPDATE II: Judging from this tale of woe, the lawyers for the defaulting borrower are themselves using what they consider irregularities of procedure to try and get their delinquent client’s debt forgiven. I am not saying that “MERS, the electronic mortgage tracking system,” and the banks that use it, are following the letter of the law, but what people seem to be skirting here, much to my horror, is that these borrowers owe money they borrowed. You don’t forgive someone’s debt because the debt-holder’s bureaucracy is bad, or even dubious. And you don’t accuse bankers as a group of robbing home owners of title to their homes, because of problems of paper trail. (As I pointed out here, to argue against the bankers, in this case, on the ground that they are, moreover, embroiled in the fractional reserve system is to make an error of logic, maybe even a categorical error. Along the lines of releasing murderers because justice system is corrupt, etc.)

Note too that nowhere do the delinquent borrowers deny that they have not paid their debts, only that they are struggling “to figure out who owns their loans, who can negotiate loan modifications with them, or even how to get a call returned.”

Also: Borrowers are deploying the very argument the bankers are using: it’s the bureaucracy.

What do you know, it seems that, as outlined in this BAB post, “the latest foreclosure crisis is indeed bureaucratic in nature.”

UPDATE III: The thing to take away from Vox’s WND column today is this line: “the law is very clear on the matter: ‘If the chain of title is broken, then the borrower’s loan is no longer secured by the property.'”

This is the positive law. The fact of the borrower’s debt is unchanged. A took from B in order to buy C. That’s another “chain” to keep in mind.

UPDATE IV (Oct. 19): STILL ABOUT DEADBEATS. From all the reports so far, FBN’s Gerri Willis’ being the latest, it is as I said. The defaulters owe boatloads of money. The bankers bungled the paper work in a manner that verges on the criminal. The reality, in as much as property rights go, comports with my distillation on this post and the one linked to it, “Financial Paperwork Crisis (No Conspiracy Thinking, Please).”

Educational (Racial) Thugocracy Wins; What’s New?

Education, Human Accomplishment, Intelligence, libertarianism, Race, Racism

Yes, she had been reforming the educational gulag that is the D.C. public school system, instead of abolishing it (abolition should include educational vouchers and charter schools, a species of the publicly funded system). But I can’t judge Michelle Rhee by this libertarian’s ideal. Rhee, chancellor of perhaps the costliest and crappiest urban school system in the developed world, has been forced to step down because she set about purging the deadwood and detritus, and the structures that nourish them (tenure as opposed talent, for instance), from the DC educational enterprise.

WaPo: “Student test scores rose, decades of enrollment decline stopped and the teachers union accepted a contract that gave the chancellor, in tandem with a rigorous new evaluation system, sweeping new powers to fire low-performing educators.”

Pursuant to her purging, Rhee has been forced, presumably, to parrot publicly that, “We have agreed that the best way to keep the reforms going is for this reformer to step aside.”

That makes a lot of sense, doesn’t it?

The powers that be have been reinstated in the person of Kaya Henderson.

SHE’S IN:

RHEE’S OUT:

Is this a case of out-with-the-Asian-outsider and in-with-the-African home girl? As with everything else in the US, the racial overtones are palpable.

Educational (Racial) Thugocracy Wins; What's New?

Education, Human Accomplishment, Intelligence, libertarianism, Race, Racism

Yes, she had been reforming the educational gulag that is the D.C. public school system, instead of abolishing it (abolition should include educational vouchers and charter schools, a species of the publicly funded system). But I can’t judge Michelle Rhee by this libertarian’s ideal. Rhee, chancellor of perhaps the costliest and crappiest urban school system in the developed world, has been forced to step down because she set about purging the deadwood and detritus, and the structures that nourish them (tenure as opposed talent, for instance), from the DC educational enterprise.

WaPo: “Student test scores rose, decades of enrollment decline stopped and the teachers union accepted a contract that gave the chancellor, in tandem with a rigorous new evaluation system, sweeping new powers to fire low-performing educators.”

Pursuant to her purging, Rhee has been forced, presumably, to parrot publicly that, “We have agreed that the best way to keep the reforms going is for this reformer to step aside.”

That makes a lot of sense, doesn’t it?

The powers that be have been reinstated in the person of Kaya Henderson.

SHE’S IN:

RHEE’S OUT:

Is this a case of out-with-the-Asian-outsider and in-with-the-African home girl? As with everything else in the US, the racial overtones are palpable.

UPDATE II: Cyber Warfare: Is It Libertarian?

Individual Rights, Iran, Israel, libertarianism, Natural Law, Technology, War

“There is a pithy aphorism from a Tractate of the Jewish Law regarding the right of self-defense. The Talmud, as the law is called, is a veritable minefield of complexities and interpretations. The rabbis would have prefaced their edict with extended discussion. They would have argued about the threshold that must be met before a pre-emptive strike can be carried out, what constitutes imminent danger, and whether defensive actions apply only to individuals or to collective action as well. These scholars belonged to a people that spent a good part of their history perfecting the Christian art of turning the other cheek. Yet ironically, and doubtless after careful consideration, the rabbis recommended that, ‘He who rises to kill thee, ye rise earlier to kill him.'” (See “Facing the Onslaught of Jihad”)

Likewise, I am not a pacifist, although I am a libertarian.

There is no doubt in my mind that Iran would evaporate Israel if it could. Yet mention to Iran’s apologists that Israel is being considered by Ahmadinejad as The Bomb’s designated test site, and the reply one invariably gets is, “Oh, c’mon; are you referring to all that ‘wipe Israel off the map’ stuff? Haven’t you heard of ‘Scheherazade of the Thousand and One [Arabian] Nights? Ahmadi’s excitable. That’s his style. Chill, man.”

[READ “That Persian Pussycat.”]

There is a strong suspicion that Israel is behind “The Stuxnet worm, ‘the most sophisticated malware ever’ … [it] has been discovered infesting Iran’s nuclear installations. There’s growing speculation that these were indeed the intended targets of what the mainstream continues to call a ‘virus’ — it only infects certain Siemens SCADA systems in specific configurations. There’s also speculation that it’s state-sponsored malware, with fingers pointing at either Israel or the U.S.”

Reuters reports that “Cyber warfare has quietly grown into a central pillar of Israel’s strategic planning, with a new military intelligence unit set up to incorporate high-tech hacking tactics, Israeli security sources said on Tuesday.”

To be sure, hacking is a violation of property rights. That is as clear as crystal. Why, spam is trespass. But this alleged Israeli property trespass is also non-violent (I doubt very much that Israel is messing with systems that sustain life).

It would seem to me, then, that if indeed Israel is under a real existential threat from Iran—and not everyone believes this—the Jewish State has found the quintessential libertarian method to begin to combat some of the Iranian menace.

What do you think?

UPDATE I: TokyoTom: An act either does or does not comport with the libertarian non-aggression axiom. I spoke about your logical error in “LIBERTARIAN WRANGLING”:

“From the fact that many libertarians believe that the state has no legitimacy, they arrive at the position that anything the state does is illegitimate. This is a logical confusion. Consider the murderer who, while fleeing the law, happens on a scene of a rape, saves the woman, and pounds the rapist. Is this good deed illegitimate because a murderer has performed it?”

Iran’s leaders have threatened to annihilate Israel. They could easily do so, given Israel’s size. The act jibes with their beliefs. The more senior leader, Akbar Hashemi Rafsanjani, right-hand man to Supreme Leader Ayatollah Ali Khamenei, once explained with lethal logical that “a single atomic bomb has the power to completely destroy Israel, while an Israeli counter-strike can only cause partial damage to the Islamic world.”

They know Israel would never launch a nuclear strike first. Iran’s top dogs have clearly done the math.

The men and women of the Israeli military, with their families in mind, have come up with a peaceful way to mess with this program of mass destruction threatening their community. And libertarians protest this? Don’t you just love the way so many libertarians inveigh against the evil of nuclear weapons, except when they are pointed at Israel?!

UPDATE II (Sept. 29): With respect to “contemplationist’s” comment here, I thought it was obvious to all libertarians who regularly weigh in on BAB, that the debate about the proper purview of the state is limited to its enforcement of natural rights only. That’s the mandate of the state in classical liberal thinking. As I have said often, to the extent that the American Constitution respects the natural law, to that extent only is it legitimate. It should be obvious to the same folks, for example, that, unlike Glenn Beck or other “Constitutionalists,” this writer views a great deal of the constitution as an affront to man’s natural rights. The 16th Amendment, for example.

“Sometimes the law of the state coincides with the natural law. More often than not, natural justice has been buried under the rubble of legislation and statute,” I wrote in a March 20, 2002 column.

“Contemplationist” has broadened the nightwatchman role of the state in classical liberal theory—confined as it is to the protection negative rights only—to include a plethora of positive duties, including intervention into the economy.

That’s statism, not classical liberalism. The debate in this post, in particular, is as to whether the Israelis, in disabling Iran’s nuclear-related cyber-operation, are defending their natural, negative rights.