Manage episode 256224448 series 30944
But those big companies are not really to blame for this reality ... the government is
But is it their fault?
That's right, giant Wall Street companies have huge holdings in real estate. However, while the media would like you to believe that this is some kind of sin on the part of these companies, the real sin is HOW they ended up owning so much residential real estate. Lets talk about how we got here and how it was clear from the beginning that this was likely to happen.
Way back when all of the foreclosed homes that ended up being held by the government needed to get sold, a plan was hatched. Instead of selling each property individually, they would be bundled together and sold in huge chunks. Maybe we should not judge the motivations on this decision. Perhaps the prevailing opinion was that these homes needed to be out of foreclosure and back in the usable market place as soon as possible. At least that might be one thought. But the easily anticipated consequences we see now should not have been a surprise. This basically made it impossible for anyone but huge corporations with lots of cash (or big credit) to purchase the properties. We covered this on this show at the time and pointed out the downside and possible other options that would be better for the market. It now appears that we were right all along.
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