Thursday, August 11, 2011

Housing Delenda Est

A day after we looked into the hole where hundreds of houses were being tenderly razed by the loving dozerblade of the caring banks under the benevolent gaze of the compassionate government, the tallest midgets in the intellectual circus are peeing into the smoking cellar holes to double down on proving me prescient again.

The Obama administration may turn thousands of government-owned foreclosures into rental properties to help boost falling home prices.The Federal Housing Finance Agency said Wednesday it is seeking input from investors on how to rent homes owned by government-controlled mortgage companies Fannie Mae and Freddie Mac and the Federal Housing Administration.(Link)

In some insane alternate universe, persons believe this is a good idea.

MarketWatch: Renting, Blowing Up Foreclosures Not A Bad Idea

In this bizarro world, people unable to afford a free house because they have no job will purchase an expensive house right next door if you'll  simply destroy the empty free house. Further, in this outre galaxy, the government-supervised rental of housing will brighten up neighborhoods, and renters will take better care of properties than owners. Okey dokey, then. See you down at Spacely's when you need some sprockets, space real estate cadets.

You'll have to bear with me, as I'm a little behind the times on these matters. We used to build good, solid, liveable houses, employed lots of people to do so at good wages, and then we'd sell them to customers who would live in them, usually by qualifying for a mortgage by having a job themselves. I fear you're going to have to bail Tony Rezko, Charles Keating, Neil Bush, Susan McDougal, or someone similar out of jail, or look under whatever rock they might be under just now, and ask them how it's going to work from here on in. Any five Senators will do in a pinch.

A little later on in the AP article, there is a bit of a clue of what we might expect:
A federal "request for information" released Wednesday included an option for previous homeowners to rent out the homes or for current renters to lease to own. Private investors could also be allowed to manage the rental properties.
I see. The housing industry will now be run from Washington using the ColorTyme business plan.Sounds like paradise.

There's no word on whether Bank of America and Wells Fargo will eventually be nationalized and run on a payday loan/ pawnshop hybrid model.


Leslie in Az said...

Forget the music, I think I need a sprocket. (Thanks for the giggle)

Anonymous said...

Hi, Loved your book, Can I nominate you for Housing czar? Federal housing experts are the same ones that ran the Mustang Ranch. They have exactly no idea of real estate, contruction, markets, or peoples wants and needs. Perfect for govt. employment. All yur comments are spot on. Blick

Ten Mile Island said...

"Jane! Get me off this crazy thing!"

teresa said...

This scheme has Valerie Jarrett's prints all over it. She is a second generation slumlord with a twist. Instead of using her own money, she let Chicago and the feds pick up the tab. Guess who got the dirty end of the stick. Yep, Eric Holder's people.
Toute la change, toute la meme chose.

SippicanCottage said...

Hi Leslie- We aim to please.

Hi Anon Blick- Thanks for buying the book. Glad you liked it.

I could use some sweet, sweet, czar money right now. If elected, I won't serve, but I will cash the checks.

Hi TMI- Thanks for reading and commenting.

That line is one of the great, enduring bits of residue left in my head from a childhood of black and white TV with three channels.

Hi teresa- All persons, when thrust into positions of authority without merit, fall back on doing whatever they're most accustomed to doing.

Casey Klahn said...

You are hot on the housing stuff. Keep it up. These will be a part of the essential time capsule someday.

An Edjamikated Redneck said...

Can you think of a better way to get Section 8 housing into EVERY neighborhood?

You didn't read between the lines.

They didn't say PAYING renters, now did they?

NJ Mike said...

My family has been in Real Estate;appraisals,sales and development, since the early 70's in Central NJ. Even when I was a kid and my Dad was explaining the CRA and it's attempt to address 'redlining' I knew it would lead to this result.
But to double down on stuidty? That simply confirms that this administration HATES America, and truly wishes it destroyed.
My brother and I had Sec. 8 renters and I'd tell you the stories but it's only been a decade or so, and I am still sick to my stomach over the massive destruction they caused to homes that he and I busted our asses to take well beyond code.

Gary said...

Do you have a law degree from Harvard?
If not, I don't want to hear it.
Wait, letting those guys run things hasn't worked out that well.
Could we let someone with some sense, as opposed to someone with credentials run things? No, we can't do that. the MSM says regular people are just stupid.
I'm so confused!
(I had my concerns when I heard about this plan, but I'm glad someone with some smarts agrees that this might not work out to well, except for the bureaucrats and administration insiders, of course. But heh, isn't that who really matter?)

Anonymous said...

I'm a landlord and having the gov't in the business scares the hell out of me. It would be bad enough that they don't care about losing money, but those guys specialize in losing money. And I have to compete against that?!

H. Gillham said...

You are such a smarty pants!!!

My wise old aunt who worked thirty years for the CIA said one time: "Thank God, we don't get the government we pay for."

She died in 1994. I wish she were alive to make comments.

Actually. Never mind.

I'm glad she's missin' what the taxpayers are now paying for...