Bailing Out Failure

Hugh de Payns
There is bad... and there is progressive and collectivist bad.

Ignore laws, private property rights, and economic reality on the way to destroying another industry in the name of "fairness". We saw this in the brazenly unlawful GM bailout. It was repeated on a large scale with the bank bailouts. Now this is being exercised in the real estate market. Lawlessness begets more lawlessness.

RICHMOND, Calif. -- A working class San Francisco Bay Area city is considering invoking eminent domain to condemn and seize hundreds of underwater mortgages to help troubled homeowners. The controversial move would be the first of its kind in the country.

In a letter sent to investors Monday, Richmond officials said the city would invoke eminent domain if investors rejected its offer to buy 626 underwater mortgages, the San Francisco Chronicle (http://bit.ly/17fMXuV ) reported.

Eminent domain is generally used to seize private property for public use, such as buying property for a freeway.

In the view too many in public office, everything belongs to the state. Everything, that is, except responsibility. The idea that the state should ensure that people are secure in their homes, persons, and property is a completely unwelcome and unacceptable intrusion into their desire for total control.

Of course there is a long list of inconvenient questions that are simply too impolite to ask, but here are a few:

• What about people who have not fallen behind their mortgages?

• What about people who bought smaller, more affordable homes within their budget?

• What about investors which may include some public pensions?

• What about the impact this will have on future real estate development?

• Who would assume the risk of lending or building knowing that your ability to assume a profit will be taken away at the whim of a bureaucrat?

• Where does this stop? What about car payments? How about student loans? Why stop with a city but instead do this statewide?

Apparently the message here is a loud raspberry to the responsible.

The rich get bailouts.

The poor get handouts.

The middle class gets left out.

That's the reality of Obama's America.

There is bad... and there is progressive and collectivist bad.

Ignore laws, private property rights, and economic reality on the way to destroying another industry in the name of "fairness". We saw this in the brazenly unlawful GM bailout. It was repeated on a large scale with the bank bailouts. Now this is being exercised in the real estate market. Lawlessness begets more lawlessness.

RICHMOND, Calif. -- A working class San Francisco Bay Area city is considering invoking eminent domain to condemn and seize hundreds of underwater mortgages to help troubled homeowners. The controversial move would be the first of its kind in the country.

In a letter sent to investors Monday, Richmond officials said the city would invoke eminent domain if investors rejected its offer to buy 626 underwater mortgages, the San Francisco Chronicle (http://bit.ly/17fMXuV ) reported.

Eminent domain is generally used to seize private property for public use, such as buying property for a freeway.

In the view too many in public office, everything belongs to the state. Everything, that is, except responsibility. The idea that the state should ensure that people are secure in their homes, persons, and property is a completely unwelcome and unacceptable intrusion into their desire for total control.

Of course there is a long list of inconvenient questions that are simply too impolite to ask, but here are a few:

• What about people who have not fallen behind their mortgages?

• What about people who bought smaller, more affordable homes within their budget?

• What about investors which may include some public pensions?

• What about the impact this will have on future real estate development?

• Who would assume the risk of lending or building knowing that your ability to assume a profit will be taken away at the whim of a bureaucrat?

• Where does this stop? What about car payments? How about student loans? Why stop with a city but instead do this statewide?

Apparently the message here is a loud raspberry to the responsible.

The rich get bailouts.

The poor get handouts.

The middle class gets left out.

That's the reality of Obama's America.