Hypocritical Elizabeth Warren Turned Profit Flipping Foreclosed Houses
When she's not looking out for the little guy being taken advantage
of by predatory lenders, Elizabeth Warren is making high-interest, short-term loans to family members and flipping homes for a profit. That's
the revelation in a story published today by the Boston Herald,
which identifies nine instances when Warren made a quick profit either
buying and reselling homes or loaning money to family members to flip
homes in the late 90s.
For instance, in 1993 Warren purchased a foreclosed home in Oklahoma
City for $61,000. She resold the home 18 months later for $95,000. In
several more cases, Warren provided loans so that her brother could buy
homes and flip them. In 2000, she reportedly gave her brother a loan with
9.5 percent interest so he could buy a home for $35,000. He sold the
home three months later for a 10 percent profit.
Flipping homes was a profitable investment for the Warren family,
which made as much as 383 percent on a five-month transaction. The
average gain seems to have been closer to 40 percent. There was nothing
illegal about the practice, but it was singled out by progressives
connected to the Obama administration as one of the irresponsible
practices that led directly to the financial crisis.
In late 2008, in the midst of the crisis, Rep. Rahm Emanuel took to the House floor and described the situation as a "man made disaster."
He placed blame at the feet of banks but also singled out people who
were "buying homes, they were being flipped as if they were pancakes."
He suggested people had a right to be angry about this behavior by banks and home flippers. Just a few months later, Emanuel would become Barack Obama's Chief of Staff.
In most of the transactions, Warren wasn't the buyer but simply
provided loans to her brother, who then made the purchases and flipped
the homes. In essence, Warren was taking the role of a bank, making
short- term loans to allow an experienced buyer to make a quick profit.
She can certainly argue that all of this activity came a decade or more
before the financial crisis hit in 2007-2008. However, there is some
obvious hypocrisy in castigating the financial system which you and your
immediate family have profited handsomely by emulating.
If nothing else, Warren has frequently posed in public as the champion of the little guy
being squeezed by powerful institutions and often forced into
foreclosure. It's worth noting that she has also been the lender looking
to make money, even if the profit she's making comes from buying and
selling a foreclosed home.