The distortion of prices in the housing sector that let to a gigantic bubble, a massive crash, and continuing uncertainly is yet another symptom of intrusive Big Government. The ham-fisted lunatic meddling continues, as seen here in suburban New York:
Westchester County received $7.3 million in federal recovery funds to buy 12 foreclosed or abandoned properties in Mount Vernon, Peekskill and Yonkers [all highly "diverse" hell holes]. In one case the county allocated up to $942,000 in federal and state funds to fix up and market a three-family home in Yonkers surrounded by conditions that would scare most potential homebuyers.
“It’s extremely difficult for us to resell those properties, particularly in Yonkers. There’s just no interest whatsoever,” Norma Drummond, county deputy planning commissioner, told the Board of Legislators’ Government Operations Committee last month. …
Drummond told legislators the toughest sell is 31 Oak St. in Yonkers, a three-family home in which the county invested up to $862,000 to buy and renovate, plus $80,000 in state funds to make it more affordable to a buyer who then would rent the other two units. Oak Street’s undesirability was underscored April 21 when Mayor Mike Spano came to the intersection of Oak and Elm streets to announce enhanced police patrols in the area after a series of shootings and stabbings.
The county’s website lists 31 Oak St. for sale at $250,000. Potential buyers are allowed to earn up to $129,500 yearly for a family of four.
Donald Trump these idiots are not.
Good thing a private company didn’t try this. Spending almost $1 million on a house in a dangerous slum, then offering it for sale at a quarter that amount could lead to insolvency. But so long as Ben Bernanke keeps that printing press going, the federal government won’t go bankrupt for years — well, for months, anyway.
The moral of the story: government should stay the hell out of real estate and every other business other than governing — and even that should be held to an absolute minimum.
On a tip from Wiggins.