Thursday, August 11, 2011

Oh great. Another real estate glut

Home sales are in the crapper. Have been for years now, and there's no sign of improvement coming any time soon.

So what's government's grand strategy?

Apparently, the federal government's looking at the idea of converting large numbers of the foreclosed houses it now owns into rentals rather than attempt a resale in flooded market.

Look out for unintended consequences.

If government goes into the rental business, or starts passing off bargain lots of houses to its friends, look for a  a new wave of foreclosures to happen.


Because landlords who've been struggling to stay afloat over the past few years may finally be pushed into default by a glut of new government-backed competitors.

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