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Meet Wall Street: Your New Landlord
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The world's largest private equity firm has quickly become the largest landlord (of rental homes) in the U.S. and in October, Blackstone offered the first-ever "rental-home-backed" security on Wall Street. One has to wonder if this was the plan all along?
Still think houses are extremely affordable? Still think rents, especially for rental stream-securitized offerings by Blackstone et al to widows and orphans , will continue rising in perpetuity? Think again. As the following chart from Bloomberg Brief shows, mortgage payments as a % of average consumer incomes has risen to 40%, up from the higher 20% as recently as a year ago, is still rising, and is now back to levels last seen in 2008.
When you look at Dodd/Frank and its requirements to lend ;its no wander many are out of the market getting any mortgage.When Geithner became treasury secretary he flat said the goal was to get back to more historic average of 65% owning home from the 70's. Anyone reading what is called consumer protection realizes that its stopping the person from making decision to borrow by restricting ability is the protection. That makes good credit and cash king.
"Blackstone will benefit from climbing rental prices in the US and a decline in home ownership."
Yes one wonders if that was that the plan all along.
This is where one looks at "affordable housing" and redevelopment agencies at the local level.
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Originally Posted by CDusr
For those who are not familiar with PPP's/NGO's and how redevelopment works. They should read this. It shows how more is privatized without voter input. That is also why it is Regionalized. See the Regional Investment Plan I posted for this area. (Corporate merger, like EU. Less public say-so. Done administratively.)
Coalition for Redevelopment Reform
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State law allows a city council to create a redevelopment agency to administer one or more "project areas" within its boundaries. An area may be small, or it can encompass the entire city.
These project areas are governed by a redevelopment agency with its own staff and governing board, appointed by a city council.
Thus, an agency and city may appear to be one entity. Usually city councils appoint themselves as agency board members, with council meetings doubling as redevelopment meetings. Legally, however, a redevelopment agency is an entirely separate government authority, with its own revenue, budget, staff and expanded powers to issue debt and condemn private property.
Still think houses are extremely affordable? Still think rents, especially for rental stream-securitized offerings by Blackstone et al to widows and orphans , will continue rising in perpetuity? Think again. As the following chart from Bloomberg Brief shows, mortgage payments as a % of average consumer incomes has risen to 40%, up from the higher 20% as recently as a year ago, is still rising, and is now back to levels last seen in 2008.
So these clowns for years have tried to get everybody in debt by just handing em credit cards and mortgages, car loans etc. Then when the sheet hits the fan they take their home from them and turn around and rent it back to em basically and start jacking the rent price. Just unreal........and then securitize the things to boot. I'm sure the government is in there somewhere backing these things. Gotta be. What was that a five point something return? So is that what your rent will go up every year?
So these clowns for years have tried to get everybody in debt by just handing em credit cards and mortgages, car loans etc. Then when the sheet hits the fan they take their home from them and turn around and rent it back to em basically and start jacking the rent price. Just unreal........and then securitize the things to boot. I'm sure the government is in there somewhere backing these things. Gotta be. What was that a five point something return? So is that what your rent will go up every year?
Govt most certainly is in there. They are the heavy lifters and big investors. Yes rental agreements tend to go up every year. You can track this back many ways. Just need to follow the money. Wall street and govt are just 2 different sides of the same coin.
“We are in the middle of an epic credit bubble, in my opinion, the likes of which I haven’t seen in my career in private equity.”
Joseph Baratta had plenty more to say including “the good times are not going to last forever,” and “we are not leveraging US GDP,” as he expects a ‘mean reversion’ in multiples and “that largesse goes to the seller.”
So these clowns for years have tried to get everybody in debt by just handing em credit cards and mortgages, car loans etc. Then when the sheet hits the fan they take their home from them and turn around and rent it back to em basically and start jacking the rent price. Just unreal........and then securitize the things to boot. I'm sure the government is in there somewhere backing these things. Gotta be. What was that a five point something return? So is that what your rent will go up every year?
Millenials were (and are still) made debt serfs via their student loans. Most won't be buying homes anytime soon. They'll be renting from the big landlord in NY.
Think Ireland, pre-famine times.
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