Monday, 30 January 2017

"Obama Administration Bails Out Private Equity Landlords at the Expense of the Middle Class"

Emailed in by TBH from Naked Capitalism.

A fairly long article, concluding with this:

Let us stress that there is absolutely no policy justification for this. The mission of the government sponsored agencies is to promote home ownership, not to give real estate speculators a “get out of losses or underwhelming returns for free” card.

Even worse, rather than forcing the private equity industry to take some well-deserved lumps for miscalculation, it will encourage them to continue to compete with lower-income prospective homeowners for purchasing properties. That means it will be even more difficult for young people to buy homes.

Lambert has pointed out repeatedly in his stats wrap in Water Cooler that real estate markets are suffering from a shortage of homes. Having private equity continue to be on the prowl for lower priced properties that they know they can unload from an economic perspective means that the pauperization of the middle class is now official policy.


Lola said...

Sigh. I really had no time at all fro Obama, and this just caps it.