…knows no limits:
A handful of local officials in California who say the housing bust is a public blight on their cities may invoke their eminent-domain powers to restructure mortgages as a way to help some borrowers who owe more than their homes are worth.
Investors holding the current mortgages predict the move will backfire by driving up borrowing costs and further depress property values. “I don’t see how you could find it anything other than appalling,” said Scott Simon, a managing director at Pacific Investment Management Co., or Pimco, a unit of Allianz SE.
But it is just “for benefit of the American people”, well some of them anyway:
Various California communities are exploring — with the help of Democratic investor cronies connected to Bill Clinton and others — their eminent domain powers to seize mortgages owned by private investors. These mortgages would then be sold to a newly formed investment company who hope to buy these mortgages on the cheap and profit from them in the months and years to come.