The Home Buying Institute is encouraging its readers to steer clear of Donald Trump on election day. We feel that his “business” practices and philosophies could spawn policies that would have a destabilizing affect on the U.S. housing market.
Let’s go straight to the source. In 2006, before the last housing collapse, Trump stated: “I sort of hope that happens [the housing bubble bursts] because then people like me would go in and buy.”
These are dangerous qualities to have in an elected leader with such influence and power. Do we want a president who clearly only cares about himself?
Donald Trump Bad for the Housing Market?
Let’s be clear. Presidents don’t control the housing market. But they do have the authority to enact policies than can affect the housing market — for better or worse.
As voters, we cannot predict the future. We cannot say, with certainty, how a Hillary Clinton or Donald Trump presidency would affect the housing market. The best we can do is try to understand their views on such matters. And no one has made his housing-related views more clear than Donald Trump.
During the first presidential debate, on September 26, Hillary Clinton said that Donald Trump was “one of the people who rooted for the housing crisis. He said back in 2006, ‘Gee, I hope it does collapse because then I can go in and buy some and make some money.’ ”
Turns out, she was right. While Trump’s wording was slightly different, he said this just a couple of years before the housing market collapsed.
A man interviewing Trump for an audiobook asked him about the “pessimism” people had about a real estate bubble and its likelihood of bursting. To which Trump responded:
“Well first of all, I sort of hope that happens because then people like me would go in and buy. You know, if you’re in a good cash position — which I’m in a good cash position today — then people like me would go in and buy like crazy … If there is a bubble burst, as they call it, you know, you can make a lot of money.”
This isn’t speculation or part of some media “conspiracy.” These are Donald Trump’s personal views about the U.S. housing market, spoken in his own words. Watch the video below for an audio recording of Trump explaining his desire for a housing collapse.
He has made similar comments on other occasions. In fact, he practically bragged about it during one of the presidential debates. When Hillary Clinton called him out for wanting to capitalize on a housing collapse (despite the financial damage it did to millions of people), Trump replied by saying:
“That’s called business, by the way.”
Clinton followed up by saying five million people lost their jobs, and $13 trillion in family wealth was wiped out (by the housing crisis and ensuing recession). Trump appeared to shrug off these numbers, because it didn’t happen to him.
Rational people who care about the stability of the U.S. economy should be horrified at the thought of a Trump presidency.
In It for Himself
There is nothing illegal about buying depreciated assets after a financial calamity, in order to make money. It’s an investment strategy (of questionable ethics). That’s not the issue we have, as real estate educators.
What’s worrying to us is the fact that Trump doesn’t seem to care about the stability of the U.S. housing market, or the fact that millions of people lost their homes during the housing crash. He doesn’t seem to care that the housing crash took the national economy down with it, leading to the most severe downturn since the Great Depression.
As long as Donald Trump comes out on top, none of these things are his concern.
In a president, this kind of sentiment could be disastrous. A president, for example, could enact policies that destabilize the housing market. A president that views the United States residential real estate market as a financial instrument to be used for personal gain, while ignoring the impact it has on other people’s lives, is a dangerous president.
That is why we strongly discourage our readers from voting for Trump.