Should we turn to big money investors to save the housing market?
That's the Obama Administration's latest brainstorm on how to fix our ever more messed up housing market.
The Home Affordable Modification Program - now that's a mouthful - is seeking proposals from investors on what to do with hundreds of thousands of foreclosed homes sitting empty and helping drag the housing market down.
And the feds appear to be reaching out to hedge funds and other deep-pocketed investors who can scoop up large tracts of homes and convert them into rentals, The Wall Street Journal reports.
Anything is probably better than Washington's current policy of muddling/sleep walking through one of the worst housing downturns in modern history - the Journal lauds the Obama folks for looking at a private market solution.
But if the game plan is to turn all these foreclosure specials over to the big boys and girls, what happens to the small investors out there looking for a shot at fixing up a few homes and renting them out?
For that matter, in a still high cost area like Greater Boston, this move could simply shut down one of the few sources of relatively cheap homes for intrepid first-time buyers.
Yes, the housing market is a mess, but is turning over neighborhoods and failed condo developments to hedge funds really the answer?
To me this looks like big government looking to cut a deal with big investors while squeezing out the little guy.
