Naked Capitalism discusses the Wall Street Journal’s inaccurate and biased piece on antiforclosure attorneys.
It take a fair degree of skill to pen a journalistic story that hews to the appearance of objectivity yet is out to sell a point of view.
The lead article in the Journal tonight, “Niche Lawyers Spawned Housing Fracas” telegraphs its bias in its headline: the foreclosure crisis is merely the creation of two bit lawyers who by implication don’t know what they are doing, and are pumping trivial issues up for their own enrichment, with the housing market as collateral damage.
Funny that anyone can think this spin is remotely true. The fact that solo practitioner lawyers could have such an impact on the system is not proof that they are miscreants, as the Journal implies. It is that the foundation of mortgage securitzations are rotten as a result of widespread abuses, first on the origination end, later in the foreclosure process. These small firm players are using the legal equivalent of toothpicks; the fact that their efforts have destablized the foundation of the residential mortgage backed securities market is tangible proof that they were imperiled to begin with.
I think it will be interesting to see what side the Journal comes down on when the investors of the mortgage securities start suing en masse based on mortgage fraud. Do they side with the big institutions who committed fraud or the investors?