More From Eric Dixon at http://www.NYBusinessCounsel.com

Support Independent Investigations With Bitcoin:
Send Bitcoin Here: 171GMeYRD7CaY6tkXs8dSTjLbAtFazxhVL

Top 50 Twitter Rank of Worldwide Startup Advisors For Much of 2014
. Go to my professional site for solutions to your legal, business and strategic problems. The only lawyer who is a co-inventor of multiple, allowed-for-grant patents on blockchain technology!!! Blockchain and Digital Currency Protocol Development --
Top Strategic Judgment -- When You Need A Fixer -- Explore Information Protection and Cryptographic Security -- MUST-WIN: JUST DON'T LOSE -- SURVIVE!: Under Investigation? Being Sued? Handling Extreme Stress -- Corporate Issues -- Startup Issues -- Investor Issues -- Contracts To Meet Your Needs -- Opposition Research -- Intellectual Property, Media and Reputation Issues -- Independent, top-notch legal, strategic and personal advice -- Extensive ghostwriting, speechwriting, book writing, issue research, press and crisis management services. Listed by American Bar Association's Law Bloggers (Blawgers). Contact EDixon@NYBusinessCounsel.com. European Union audiences: This site uses a third party site administrator which may use cookies but this site is intended for AMERICAN clients and prospective clients only!

Saturday, March 25, 2017

Former Goldman Sachs Executive Would Turn Foreclosures Into Mini-Ghettoes

Whenever you hear people talk about this so-called "foreclosure crisis" or "housing crisis" or whatever these Leftist opinion leaders call it, remember that good policy requires speaking the real truth about public housing. 

Because if we don't, we soon are going to all end up in public housing, that is, in housing where the actual quality of life is indistinguishable from a housing project! Let me explain how.

First of all, there could be an impetus, stemming from this year's New Jersey election for Governor.

The very wealthy former Ambassador to Germany under former President Obama, Phil Murphy, is running for Governor of New Jersey and he is currently battling for the Democratic nomination. The common wisdom and press coverage right now indicates he's a heavy favorite to get the Democratic nomination. As registered Democrats outnumber registered Republicans statewide by nearly two to one (over two million registered Democrats to about 1.2 million Republicans, but over 2.4 million voters haven't picked a party, according to these new figures), and also seeing that Hillary Clinton ran strongly in New Jersey (beating now-President Trump by 14 percentage points), it's a very good bet that Murphy will be New Jersey's next Governor. 

Here is what is troubling. Ambassador Murphy, perhaps being made to feel he should be ashamed of his own accomplishments in life, senses he must atone for his success by "giving back."

I've met Murphy and spoken to him at length personally. He is a decent man, perhaps too decent for retail politics. I sense it is in that spirit that Murphy wants to turn foreclosures, in the midst of thriving working, middle and upper class neighborhoods, wants to solve the "foreclosure crisis" or "lack of affordable housing crisis" but his "plan" would risk turning any foreclosed property into a mini-ghetto.

Murphy puts forth his "housing rescue" plan (actually a rehash of a twice-vetoed "foreclosure residential transformation" bill passed by New Jersey's Legislature earlier this decade) on his campaign website. It reads:

Murphy said he would aggressively pursue the state's fair share of Wall Street mortgage settlement funds to launch a program in which the state would purchase foreclosed homes and partner with qualified nonprofits to repurpose them as affordable housing.

"Affordable housing"? 

In plain English, folks, that means a little housing project, for a whole bunch of people who otherwise can't afford (or do what it takes to earn a living sufficient) to live in your neighborhood.

As for your home values, they're likely to crash. Moving people "who can't afford 'affordable housing' " may be great to get the approval of the brie-cheese-and-caviar intelligensia, but it isn't good for the property values of the neighbors of the new mini-project.

That's because people who can move out of the ghetto, get the hell out of them and they do not ever look back. There's no conga line of people lining up to buy homes right next to housing projects -- er, sorry, "affordable housing." Why is that? It's because public housing contains some of the worst people you would ever want to have as neighbors. The mentally ill, the drug-addled, and plenty of criminal elements.

Turn a foreclosed mini-mansion into "affordable housing," and you'll have more "for sale" signs than dandelions very quickly. 
___________________________________________________
FLASHBACK: How "Foreclosure Relief" Hurts The Poor. Eric Dixon's 2012 analysis on a disastrous foreclosure relief plan which passed New Jersey's legislature, not once but twice!
___________________________________________________ 
It's also because public housing was originally sold to the electorate as an absolute last housing option for those with no other choice except homeless shelters or a cardboard box outside. It was not intended to become permanent low-income housing, which is precisely what it's become across America. (Ask yourself whether its original proponents knew all along what would happen, and purposely stayed silent.)

Some very good houses in upper and middle-class areas fall into foreclosure when disaster strikes their owners. It could be a medical emergency of which the cost outstrips the insurance coverage. 

Under the Murphy plan, those homes would become a great opportunity to turn a big house into a multi-unit "affordable housing" development, or a drug rehab center, or a property for some other "noble purpose."  

If the home equity you've built over decades of responsible ownership gets wiped out, well, you're a homeowner so you are one of the "rich." It might be more intellectually honest to simply come out and say the following: It serves you right. 

Why would any politician advance such a plan? Maybe it's because the politician doesn't understand basic economics. Some of our elected leaders do not understand basic supply and demand. Many others are disdainful of economic cause and effect. But why would Murphy, who is clearly a smart guy -- a former Goldman Sachs executive who actually omits any reference to this on his campaign website -- push this plan?

He understands the economic forces at work. He also understands the political forces which make him make a choice between the Leftist or "progressive" votes he thinks he needs, and the homeowners whose votes he believes he can take for granted. 

In making such a choice, politicians like Murphy are pandering to the mob of Gramsci (i.e., cultural) Marxists who envy, hate and want to hurt anyone else who's "got more." To these real deplorables who believe in political or cultural Marxism, anyone with a home may be branded as morally inferior, evil incarnate, and thus the ends justify the means.

If they cannot confiscate your property -- which I believe will be the end goal -- they can try to reduce its value. 

Confiscation and destruction of private property has often been among the first actions of totalitarian regimes upon seizing power. This attitudinal shift is laying the groundwork for future generations to come to believe those actions would be totally reasonable, acceptable and legitimate. 

Private property, after all, is the crime in their eyes. So these "foreclosure relief" measures are really just an attack on private property. The strategy is to attack the value, your value, your wealth, and by extension, your work, effort and sacrifice for all these years.




No comments:

Post a Comment