The Government Is In the Real Estate Business Now

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Among the natural rights of the colonists are these: First a right to life, secondly to liberty, and thirdly to property; together with the right to defend them in the best manner they can. ~ Samuel Adams

The WSJ reports that the the Obama administration plans to talk to groups of investors on Wednesday to discuss plans to rent out foreclosed homes owned by Fannie and Freddie.

In case you didn’t know, Fannie has been selling foreclosed homes to investors for $200, making the mega rich, mega richer. I thought Obama hated the rich – so confusing.

Now they have this new rental gig going. How much will the taxpayer be on the hook for this? They will undoubtedly rent the homes to deadbeats because that’s who they are.

The government has 92,000 foreclosed homes (we keep buying the delinquent mortgages from banks of course). The government in their wisdom thinks it is advisable for them to get into the rental business.

Turbo tax cheat, Tim Geithner said, “Exploring new options for selling these foreclosed properties will help expand access to affordable rental housing, promote private investment in local housing markets and support neighborhood and home-price stability.”

The government is actually running neighborhoods down by driving prices to the bottom when they sell to investors for almost nothing. I’m sure their skills at renting will be equal to their selling skills.

Their other idea is to sell to private developers – great idea – no chance of corruption there (irony here).

The government needs to keep selling these houses as they have been and then get out of the housing market. We’re not communists yet. I don’t want the government owning huge percentages of the U.S. real estate.

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