Speaking of Obama Trial Balloons…
The latest one I’m hearing concerns housing for the homeless. With unemployment increasing with each passing day, the ranks of the homeless are, too. Tent cities are popping up in places like Sacramento and San Diego, and the mayors of those cities are getting restless.
We have a glut of foreclosed and soon to be foreclosed homes, with most of those dwellings now vacant, owned by the banks. The banks would like to unload these properties as fast as possible, whatever the price.
Enter the U.S. Government. They would buy up these foreclosed homes from the banks and solve the homeless problem in one, swift stroke. The homeless would be provided with Section 8 housing, the glut of unsold homes would be alleviated, the homeless would be sheltered, the housing recovery would begin, and with it the overall economic recovery.
The government could care less that Section 8 housing would depress real estate prices for years, and could care less that local communities would have new budget problems resulting from the increased crime that would manifest itself. And it would welcome a society that more than ever is dependent on the government in everyday life. And it would all be paid for with additional taxes on all of us, whether or not they choose to call it a bailout.
Don’t laugh. From what this administration has shown thus far, this is a very real possibility.