**Posted by Phineas
Whatever. Let’s not quibble over small details, such as being utterly, humiliatingly wrong. Instead, this is a time to celebrate Porkulus’ many accomplishments — the jobs and wealth created. How our (borrowed from China) money was wisely spent. Stories such as this one:
In an effort to stabilize the city’s real estate market, a federal stimulus program has spent nearly $1.5 million on eight Modesto homes that ended up being worth less than $1 million.
Example: Taxpayers paid $223,641 to buy and fix up a foreclosed south Modesto house that was built in 1992. But when the city’s 16-month renovation project was done, the home appraised and sold for only $114,000.
The government lost $109,641 on that just completed deal.
Taxpayers also have spent $109,494 to buy and renovate a 1948-vintage two-bedroom home in Modesto’s airport neighborhood. That house has appraised for only $55,000, and a buyer has yet to be found.
The federally funded Neighborhood Stabilization Program is being managed by the city of Modesto, which plans to resell an additional 18 or more rehabilitated homes this year.
The eight refurbished Modesto homes have cost taxpayers, on average, 34 percent more than appraisers determined they were worth after repairs were complete. That’s an average of $61,487 each.
In investing, that’s called “value destroyed.” And, as of the article’s writing, they weren’t finished!
(Crossposted at Public Secrets)