The Carroll Standard

Obama Administration to Sell Foreclosed Homes To 'Vulture Capitalists'

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(Breitbart.com) -- Would you like to purchase a home for pennies on the dollar? We all would, but that is too bad, because President Obama is reserving that privilege for large venture capital firms or, as he likes to call them, “vulture capitalists.”

Strange, since one of the main thrusts of the Obama campaign is that Mitt Romney is a so called “vulture capitalist”; and a new ad by a pro-Obama super-PAC, Priorities USA Action, claims Romney profited off the backs of the middle-class by bankrupting businesses, with the tag line “If Romney Wins, The Middle-Class Loses.”

The plan is to create large pools of foreclosed homes, known as REOs (real estate owned), currently held by Fannie Mae,  that will be sold off to venture capital firms and banks at rates that are highly discounted from their real value. These entities would then be required to hold these homes for a specified period, likely ten years or more, while they rent them out at market rates: a lucrative growth industry, as each day more home owners are converted into renters by these same foreclosures. 

The upshot: Obama, who claims Romney has assaulted the middle-class by bankrupting corporations for profit as the head of venture capital firm Bain Capital, has created a path for venture capital firms exactly like Bain Capital to profit directly from the bankruptcies of individual middle-class citizens who have lost their homes in the ongoing housing crisis. This constitutes a frontal assault on the "ownership-society" and the middle-class and will result in a massive transfer of wealth from the public to the private sector. Since public sector equals the collective taxpayer, it is unclear why we would want to cut financial institutions and "vulture capital" firms dream deals on these homes instead of individuals. more...