California Democrats have voted to pass AB-1840, a bill that would pretty much assure another housing crisis like the one we had in 2008. Why? Because it will basically give away money for home purchases and allow low-income buyers – including illegal immigrants – to pay nothing for home loans.
The will would allow immigrants with no income, credit or cash to qualify for $150,000 loans that they do not pay back until they sell the house. These are taxpayer backed homes! This means that taxpayers who do work hard to qualify for a loan will subsidize those who do not qualify!
What’s worse, it has been reported that Blackrock has been buying up housing in California so if the state helps low-income people buy these homes, this is a wealth transfer of California taxpayer money to Wall Street.
Did we learn nothing from 2008? Low-requirement loans topple economies!
This is terrible economics but it may never amount to anything since, as The National Review reports, “even if Newsom does sign the legislation, it’s unlikely that any illegal immigrants will receive money from the program anytime soon: the program is broke, and lawmakers haven’t approved new funding.”
