In California, government officials are pursuing a murky deal to “solve” the housing crisis by marrying government power with private enrichment. As Steven Greenhut explains, those officials would use eminent domain — i.e., the power to take property by force, upon the payment of “fair compensation” to the owner — to wrest control of hundreds of mortgages held by private-equity firms. They’re not taking the actual property, mind you, but grabbing the notes held by those who financed the homes. Advocates see it as a way to halt foreclosures, but critics rightly point out that the deal is financed on the backs of taxpayers and is an abuse of government power to boot.
GET REASON MAGAZINE
Get Reason's print or digital edition before it’s posted online
- Peter Suderman: Obamacare's 12 false premises and broken promises. Plus: The long, tortured quest for a conservative health policy.
- Consumers should drive medicine
- Jacob Sullum: Prosecutors disarm defendants by freezing their assets
- Ronald Bailey: The Aloha State’s dishonest anti-biotech campaign