May 29, 2015

SENATOR FROM THE STATE OF HYPOCRISY: The Ironic Tie Between Elizabeth Warren’s Hypocritical Home Flipping and Mitt Romney.

Warren’s public face is contradicted by her private actions – actions that we will soon see are similar in nature to those that made Romney a millionaire.

Warren, like Romney, profited by buying assets at low prices and through either improving said assets or waiting for the market to strengthen, selling them at higher prices.

As Jillian Kay Melchior and Eliana Johnson lay out in a recent National Review exposé, Warren “bought and sold at least five [residential] properties for profit,” generating at least $240,500 before accounting for remodeling costs.

Several of the homes Warren purchased and then flipped had been foreclosed upon.

The focus of the piece is the rank hypocrisy that Warren would execute such profit-seeking transactions, given that she has called the idea of buying and selling properties quickly for profit a “myth” that contributed to our economic woes, and decried the banks that foreclosed on the homes of working class Americans. . . .

What Romney did at the macro level in investing in businesses worth hundreds of millions or billions of dollars, Warren did at the micro level in investing in homes worth thousands or hundreds of thousands of dollars.

The difference however is that Romney’s investing in many cases led to the creation of ever-better goods and services at ever-lower prices, with the benefits accruing to not only Romney, Bain’s investors, and the employees of the strengthened companies, but all consumers – that is, you and me.

Certainly Warren’s investments in home remodeling may have created work for construction companies and home suppliers, but those benefits pale in size and scope to the benefits to the public of successful private equity investments.

But, but, Mitt’s garage had an elevator!

InstaPundit is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.