in today’s news…
Ok MadMen…I have mixed feelings about this one.
The Obama Administration says it may decide to allow foreclosed homes to be rented out to help stabilize the housing market.
The Wall Street Journal reports:
“The Obama administration is examining ways to pull foreclosed properties off the market and rent them to help stabilize the housing market, according to people familiar with the matter.
While the plans may not advance beyond the concept phase, they are under serious consideration by senior administration officials because rents are rising even as home prices in many hard-hit markets continue to fall due to high foreclosure levels.
Trimming the glut of unsold foreclosed homes on the market is “worth looking at,” said Federal Reserve Chairman Ben Bernanke in testimony to Congress last week.”
The Government as landlord?? Private contractors (meaning corporations) in charge of managing rent prices? This could go really bad for Joe Public son. How about making that “modification” plan actually work and putting the pressure on the banks to readjust the principle on over-bloated mortgages and adjusting it to market value – which in turn would bring down the monthly payment to a price most Americans can afford in a depressed market?
It seems like a set-up for modern-day share-cropping. It looks like a win-win for the government and rich investors and a continued kick in the ass for us regular people.