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(1) America's elite creates a housing bubble (2) America's elite forecloses on the residents (3) America's elite buys the houses at low cost, then rents them ba
by winstonx 13y ago
(1) America's elite creates a housing bubble
(2) America's elite forecloses on the residents
(3) America's elite buys the houses at low cost, then rents them back to the residents.
That's a nice racket.
- busterarm 13y agoLooks like they solved the problem South Park's gnomes had.
- Dylan16807 13y agoBut would the residents have been owners in the first place if not for the bubble throwing mortgages around like candy? I'm not convinced this is a racket. Whereas selling bad mortgage-backed bonds was definitely a racket.
- andybak 13y agoWhile I'm not going to suggest anything conspiratorial, when I first thought about the 'easy mortagages' trend and the fact that the property itself was the collateral, the perverse incentives involved seemed so obvious that I assumed there must be a large mitigating factor I wasn't aware of. One thing I don't fully understand, why don't the lenders themselves auction of the properties rather than keeping and profiting off the foreclosed properties themselves?
- wavefunction 13y agoYou forgot a few steps: (1b) American taxpayers bailout insolvent securities firms whose whole business is supposedly predicated on competent risk assessment as a core skill yet totally ignored best practices to threaten the entire economy. (1c) Pays themselves handsome commissions. (3 addendum) buys the houses at a low cost made so by the bubble they created _with the bailout money of the taxpayers!!!!!_ (4b) destroys communities, defunds schools, further atomizes and disorganizes the modern American society
- malandrew 13y agoYup, they are giving out mortgages with all that free/cheap money, unfortunately they are only giving it out to themselves.