[quote=EconProf]To both the above posters, I was careful to say (like any CYA economist) that the positives outweigh the negatives, for a net benefit to society. While the scenario portrayed is not perfect, lets remember the horrendus job the government does at holding assets like boarded-up houses. That’s what we need to get away from, and it takes a private-sector, profit-motivated investor to do it.
And, livinincali, if they get burned going this route, as you suggest they will, hey…that’s capitalism. At least its the private sector, not the taxpayer as at present, who loses.[/quote]
Though there might be some loss-sharing agreements, which would NOT be good for taxpayers.
Personally, I think the govt should have been auctioning these houses off to the public via a public auction site run by Fannie/Freddie. A fully transparent system where each and every transaction is visible to all, and where everyone gets a chance to bid.
That’s the best way for the govt to get the best deal for taxpayers, and it’s the best way for end-users to get the best deal on a home to live in (foreign concept, I know).
