RollingStone Magazine : Another Hidden Bailout: Helping Wall Street Collect Your RentSubmitted by Cyril on Tue, 03/27/2012 - 03:10
Okay, I guess I'm not going to be a homeowner anytime soon, and being a renter isn't super hopeful either ... Wait. Is there a third option ?
By Matt Taibbi (3/19/2012) :
"Here's yet another form of hidden bailout the federal government doles out to our big banks, without the public having much of a clue.
This is from the WSJ this morning [WSJ, 3/19/2012]:
"Some of the biggest names on Wall Street are lining up to become landlords to cash-strapped Americans by bidding on pools of foreclosed properties being sold by Fannie Mae...
While the current approach of selling homes one-by-one has its own high costs and is sometimes inefficient, selling properties in bulk to large investors could require Fannie Mae to sell at a big discount, leading to larger initial costs."
In con artistry parlance, they call this the "reload." That's when you hit the same mark twice – typically with a second scam designed to "fix" the damage caused by the first scam. Someone robs your house, then comes by the next day and sells you a fancy alarm system, that's the reload. [...]
Even better, many of the banks/investors who buy these home loans back from Fannie/Freddie will rent out their properties instead of reselling them, which can vastly increase their revenue streams. From the WSJ: [...]"
Read on :
[WSJ, 3/19/2012] http://online.wsj.com/article/SB1000142405270230386340457728...