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Meet Wall Street: Your New Landlord
quote:
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?
Before even reading your post, that's what I initially thought after seeing the title.
Nearly a third of foreclosed borrowers, or 1.2 million, in 2009 and 2010 were fighting off foreclosure even though they never defaulted on their loans or were otherwise in good standing under bank-approved plans.
The former employees, who worked at Bank of America centers throughout the United States, said the bank rewarded customer service representatives who foreclosed on homes with cash bonuses and gift cards to retail stores such as Target Corp and Bed Bath & Beyond Inc.
For example, an employee who placed 10 or more accounts into foreclosure a month could get a $500 bonus. At the same time, the bank punished those who did not make the numbers or objected to its tactics with discipline, including firing.
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.
Simple Economics tells you that we're not at a healthy equilibrium.
There's tons of homes on the market and not enough buyers because the prices don't reflect the state of the Economy. They are being inflated by the banks in many markets.
The homes that blackstone is buying up in my city (3500) are pieces of crap tract homes that will be falling apart in a few years. We are talking cookie cutter stuff with the cheapest grade materials you can get.
Meet Wall Street: Your New Landlord
quote:
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?
i don't know if it was the plan all along
but i remember thinking whenever we bailed out the financial sector, that this was exactly what they'd do: wait for the bubble to shrink, sit on their cash, and then buy them all up and rent them out.
Nearly a third of foreclosed borrowers, or 1.2 million, in 2009 and 2010 were fighting off foreclosure even though they never defaulted on their loans or were otherwise in good standing under bank-approved plans.
The former employees, who worked at Bank of America centers throughout the United States, said the bank rewarded customer service representatives who foreclosed on homes with cash bonuses and gift cards to retail stores such as Target Corp and Bed Bath & Beyond Inc.
For example, an employee who placed 10 or more accounts into foreclosure a month could get a $500 bonus. At the same time, the bank punished those who did not make the numbers or objected to its tactics with discipline, including firing.
For the dozenth time, those articles have been proven to be flat out wrong. Those people did default on their loans, but a news organization claimed that they were potentially protected from default due to a litany of laws. Nothing was ever proven to be valid from those articles.
You keep reposting the same two articles without ever addressing the fact that no one can prove they are right.
Meet Wall Street: Your New Landlord
quote:
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?
I've wondered about this, and it wouldn't at all be surprising. Housing prices have soared where I live over the past six months, and I never did quite understand why. Many of the homes were still underwater as of last year, and some of the houses have been sold without any obvious increase in demand. I've cynically assumed that our neighborhood is going to turn into a dumping ground for investors who want to rent out to lower income house hoppers, and this article might be the first evidence of that.
The homes that blackstone is buying up in my city (3500) are pieces of crap tract homes that will be falling apart in a few years. We are talking cookie cutter stuff with the cheapest grade materials you can get.
That is the perfect scam for them.
Don't do any repairs or modifications to it and let it become section 8 housing,
and Blackstone gets paid top dollar for the garbage with the tax payers footing the full bill.
When are people going to learn that the Big Wall Street Banks are the enemy of this country.
They are behind a lot of the destructive policies going on in this country.
On both the "Democrat and Republican Side" they reap the benefits of illegal immigration, cheap overseas labor and constant wars.
When are we going to create some policies to rein in their power?
Quote:
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
--Jefferson
Regardless if some wish to dispute if this quote is true or not, it is a fact that those that have control over our monetary policy, have the power to destroy this country for their own enrichment.
but i remember thinking whenever we bailed out the financial sector, that this was exactly what they'd do: wait for the bubble to shrink, sit on their cash, and then buy them all up and rent them out.
I'd rather we had bailed out the homeowners directly and the banks would get their money through them.
Instead, we bailed out the banks, people lost their homes.
The banksters got bailed out and also got to keep the homes
Why would a person willingly sign a contract for a mortgage they couldn't afford?
It isn't best buy's fault if I buy a flat screen TV on a credit card that I can't pay off. How are mortgages any different? "Buyer beware".
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