Lieu fields questions on foreclosures, state budget at Calitics

Ted Lieu is now on-line over at Calitics answering questions.

So far, he has identified global warming as the most dangerous long-term threat to California, urged an end to the 2/3 budget requirement, and vowed to fight to increase the loan limits under the federal mortgage bailout.

Lieu got a question about whether delaying foreclosures merely prolongs a much-needed market correction. This is how he answered:

A foreclosure is one of the most inefficient market mechanism ever designed by humankind.  The lender loses half or more of the loan value, the family gets thrown out on the street, all sorts of fees are paid, empty homes then flood the market and destabilize it, and the vacant homes become blight and a public safety problem.  It is a lose/lose/lose/lose proposition all the way around.  If we can mitigate some of these foreclosures, then we are all better off.

Lieu, of course, is running for attorney general.