Mitt Romney's plan for the housing market looks a lot like what he did with Bain Capital back in the day.
Via Daily Kos:
As to what to do for the housing industry specifically, and are there things that you could do to encourage housing?
One is, don’t try and stop the foreclosure process. Let it run its course and hit the bottom, allow investors to buy up homes, put renters in them, fix the homes up, and let it turn around and come back up.
The Obama administration has slow-walked the foreclosure processes that have long existed and as a result we still have a foreclosure overhang.
At least one of them finally said what I have long believed to be the plan. When the housing market bubble burst, it left lots of bargains for people with money to buy and sit on while waiting for home prices to turn around. But more importantly, what Romney is proposing is to make a market in rentals, driving rents up while the middle class is squeezed even harder and tighter than it already is.
Let's play Monopoly with Mitt. It would go something like this:
- Banks given green light to foreclose faster on homes and presumably, commercial real estate.
- Private investors buy up foreclosed properties at bargain-basement, bottom-of-the-barrel prices.
- Millions of former homeowners now become renters.
- Rents climb as demand climbs for people to rent homes.
- Property values increase over time.
- Rental properties are sold at inflated prices to those who can afford to buy.
- Lather, rinse, repeat.
You should be able to envision the money flow fairly easily. It comes to the wealthy investor in two ways. First, through the increased rents; and second, through the sale of properties which have appreciated as a result of the demand for housing which will happen at some point in the future.
Mitt Romney said this in Las Vegas Tuesday. He said it in the state that sits at the top of national rankings for home foreclosures.
Romney is likely to be the Republican nominee to run against Barack Obama, media infatuation with Herman Cain notwithstanding. Everyone should understand the plans they have for us. Lie, cheat, steal, impoverish, and lie, cheat and steal some more. He said it all, in one 30-second clip.
Update: President Obama responds, via Twitter:
Let foreclosures "hit the bottom"? Our take: Romney won't lift a finger to protect the middle class. http://OFA.BO/P9VvHm