Demolition in Detroit

"Detroit Shrinks Itself, Historic Homes and All"
http://online.wsj.com/article/SB10001424052748703950804575242433435338728.html

in a nutshell Detroit will be demolishing 10,000 vacant homes including historic homes like the boyhood house of Mitt Romney. The reason is that they have become "eyesores" and are "bad for the neighborhoods" and so forth. Federal stimulus money will pay for much of the demolition work.

This strikes me as wasteful and profligate. Paying money to destroy assets. These homes could not be fixed up? They could not be given away in return for pledges to fix them up?

I'm sure that the big homebuilders lobbied Michigan, Detroit and Washington to do this - spend federal money on demolishing existing housing stock. Guys like Pulte, KB and the National Association of Homebuilders. Existing homes demolished will mean new homes are needed. Don't be fooled by the "green space" wool (as in over your eyes). This is about reducing supply so when the economy turns there will be a need to build NEW homes.