The Wall Street Journal reports on the decision of a bank in Texas to tear down 16 partially completed houses that came into its possession following a foreclosure. The bank calculated that it was cheaper to just tear down the buildings then to try to resell them.
It would have been helpful if the article explained the obvious implications for the hundreds of billions of dollars of "troubled assets" that banks hope to sell with taxpayer subsidies. Many of these assets are in fact worth the low price at which the market now values them (@ 30 cents on the dollar). The media have helped maintain the fiction that these assets are in fact worth considerably more even though there is no evidence to support this position.
If you enjoyed this article, please consider making a tax-deductible donation today. For over 30 years, The American Prospect has delivered independent reporting that exposes corporate power, investigates political corruption, and analyzes threats to our democracy. Unlike many media outlets, we’re not owned by billionaires or corporations—we’re powered by readers like you.
Today’s independent journalism faces unprecedented challenges. Your support makes our reporting possible and keeps our work free and accessible to all. Whether it’s $5 or $50, every contribution helps sustain our nonprofit newsroom.
Join our community of supporters and make a donation today to help keep independent journalism thriving.
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved
