Sunday, May 23, 2010

Obama Administration on the Verge of Giant Sell-Out to Conservatives...

"On the verge"? I'd say that's pretty much what he's been doing since Day 1! But granted, this IS a biggie. Turning over government-subsidized housing to private corporations would be a disaster - much like privatizing other essential government functions. The cost to the impoverished consumer needing help goes way up, choice and security goes down. The only true beneficiaries of this scheme are - surprise! - corporations.
Why this - why now? This is insanity - unless you're in the banking or overlord class.

From Alternet:
The Obama Administration’s move to the right is about to give conservatives a victory they could not have anticipated, even under Bush. HUD, under Obama, submitted legislation called PETRA to Congress that would result in the privatization of all public housing in America.

The new owners would charge ten percent above market rates to impoverished tenants, money that would be mostly paid by the US government (you and me, the taxpayers). To maintain the property, the new owners would take out a mortgage for building repair and maintenance (like a home equity loan), with no cap on interest rates.

With rents set above market rates, the mortgage risk would be attractive to banks. Either they make a huge profit on the mortgages paid for by the government. Or if the government lowers what it will pay for rents, the property goes into foreclosure. The banks get it and can sell it off to developers.

Sooner or later, the housing budget will be cut back and such foreclosures will happen. The structure of the proposal and the realities of Washington make it a virtual certainty. Read the rest here.

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