There’s always something to howl about

CNBC: “In the name of supporting home prices, the Obama administration will likely put in place a system under which investors make private profits while the taxpayers subsidize the risk.”

Is housing the next Solyndra? Looks like it. The Obama administration is getting ready to transfer billions of dollars worth of foreclosed homes to campaign donors. If you think still more Rotarian Socialism sucks, wait until the house up the block from yours goes Section 8. Looters never tire of loot, so rent money they don’t have to earn will turn out to be the perfect garnish for real property they won’t have to pay for.

We are living in Part Three of Atlas Shrugged


8 Comments so far

  1. Joe Hayden January 9th, 2012 7:12 pm

    I thought the housing market was the first Solyndra?? 😉

    Seriously(?) though, the long-term implications of this move are incredible. It has the potential to erode equity in large areas almost immediately, with the recovery potential dampened severely.

    I have found only one word to describe Washington as of late – irrational. Logic zigs, they zag. What appears reasonable is demonized as irresponsible. Odd is normal, normal odd… It leaves behind a total mess as people argue inane and useless points while behind the curtain the plan is executed. Brilliant, really… Except for one flaw – Freedom is being destroyed and getting it back will take many, many generations, if ever.

  2. Greg Swann January 9th, 2012 7:19 pm

    I’ll give you a better horrorshow:

    It occurred to me as I was writing this that owners of C- and D-level multi-family properties should sell now, since this is where the tenant pool for these free rental homes is going to come from. But then I thought more. Who’s game for a buy-and-bail? “Buy” the SFRs with FanFred guaranteed loans into one LLC, then dump the multi-family properties, which are financed with non-guaranteed loans. Voila! The “investors” launder their assets into taxpayer-secured notes. That’s the way good looters do it!

  3. Joe Hayden January 9th, 2012 7:58 pm

    Why am I always late to the game??

    Curious how many persons were tipped early to set up the infrastructure for these large buys? It will be interesting to see who “conveniently” is ready to make these purchases as soon as they come available…

  4. Jeff Brown January 10th, 2012 2:41 pm

    Even Dems who aren’t yet true socialists will look at this and realize evil is in charge. I can’t believe this will become reality. ‘Course that’s what guys like me said in ‘part III’ too.

  5. Thomas Johnson January 10th, 2012 10:50 pm

    This makes the case for our investors to buy only quality properties realizing that quality neighborhood with low foreclosure rates will not have a preponderance of Section 8 to be houses. It would be fun to see a celebrity Hollywood manse go Section 8, though.

  6. Jim Klein January 11th, 2012 8:49 pm

    Did everyone miss the bright side? What comes after Part III?

  7. Jim Wagoner January 12th, 2012 7:06 pm

    Once again the government is making the wrong moves to solve the real estate market problems.

  8. Thomas Dickenson January 18th, 2012 6:27 pm

    It’s really sad to know that the government are still at a lost on how they can resolve the real estate dilemma. The housing market should start picking up this year but this will not improve if the authorities continue to implement and practice careless measures.

    Thanks for this post, Gregg!