largest transfer of wealth about to begin...
 

The largest transfer of wealth from the public to private sector is about to begin.
http://www.thestreet.com/story/11224...t-for-you.html

These homes, which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value.

You and I will not be allowed to participate.

Of course not.

If the government kept the homes and rented them out for profit then would we
have a deficit in 20 years?

Hmmmmm.

Government managed and maintained housing? In 10 years they would be worthless.

Maybe, but based on what I have seen in housing projects I would be willing
to try it.

I've seen very old housing projects that were in very good shape.
No one wants to live with the poor, but plenty of people would take those
apartments if they were in another location.

Makes me proud to be an American!

that's what I'm thinking, but also I was thinking 5 years at most, probably closer to 2 years tho... :2 cents:

Not if done correctly. Rents are doing pretty good right now. Outsource management to local realty firms and management companies and treat them as assets just like any acquirer would.

How else do you propose it should have been handled?

People complain now that the government can run things. Not to mention that is has too much power. Now you want it to be people's landlords? Oh year then the government will have to hire people to run these places( collect rents, maintenance etc ) and of course were is that money coming from?

Done correctly is how exactly? Are you really proposing that government getting into a real estate rental business is a good idea?

u have the right to remain stupid

sweet, but what will they do with them?!?

It's ok, all part of raising their taxes

They've been doing it since this crisis started. They should have the same REO agents managing their properties now to continue to do so except begin to take money in rather than spending it.

That was in central germany the same. Not the highest bidder got the houses.

They already are in the business, it's called housing projects.

Ever here of Fannie Mae?(buying not renting)

What the government is not involved in is building housing that middle class
people would rent/buy. I think that area would be profitable.

Why does the government always have to relegate itself to money losing
projects that nobody else wants? They don't.

Maybe they didn't start out as money losing projects that nobody wanted, and only became that way once the government got involved.

a. HUD: a massively inefficient corrupt money losing nightmare.
b. Real estate for the poor, largest creator of wealth in pre-socialist England.

a. Government oversight brings an unsustainable pyramid of entitled "workers" who can't be fired and advance via seniority.
b. Entrepreneurs are crushed until someone figures out how to do it right.

a. Governments govern by acquiescing to the squeaky wheels.
b. Squeaky wheels don't pay.

Allow everyone else the same opportunity?

yeah really. they don't want to deal with 1000's of transactions from every tom and hairy dick.

As much as i hate the govt & wall street, this editorial stinks. First off, what is "real value"? Like when an average home tripled in price over 10 years? Second, these bulk sales involve homes likely robbed of valuables like copper wiring & fixtures, AKA unliveable homes. Last, getting tens of thousands of troubled homes off the books by selling them one by one would take eternity. Bulk sales is the only option. Who other then the rich can buy R/E in bulk. Dumb fear mongering editorial.

Isn't this mimicking the same thing done in the late 80s or early 90s when the government had a ton of bad assets from the S&L scandal?

If so a lot of fortunes of today were built then.

Foreclosed homes are a nightmare. Homes that have green swimming pools. Mold infestation. Stripped wiring and plumbing. Water damage. Bad roofs, structural problems. Debris throughout the house. Chinese drywall. synthetic stucco damage. Lead paint. The list of 5 to 6 figure repairs goes on & on. God forbid a home is located near a superfund site. Point being...an unmaintained foreclosure can quickly turn into not only a worthless asset, but one that costs money to tear down. Hence, the bargain prices.

And the distribution of wealth ratchets up another notch squeezing the middle class.

The US will continue to pay taxes for the maintenance and upkeep of the Great Smoky Mountains National Park but it has been turned over to UN control.

fuck em sideways then, i didn't wanna join anyway.

Bush sux0r. :1orglaugh

The reason they don't want to open it to the public is this. If they put 1% of the USa housing stock on the market at a fire sale price and screamed come and get it. It would hurt the whole country. By doing one big quiet deal, it moves it along. If the buyers are qualifed and have the cash to go right in and start fixing them up, it actually helps the economy. The RTC did the same thing under Bush senior. If you want a cheap house from HUD or Fannie Mae go looking. They are out there.
These houses are not in the suburbs. The majority are in the inner city. So how can you get money out of treasuries and into the economy if all you have it s houses in tough neighborhoods that no one wants? Make a big one time sale. I say go for it and I own and buy these exact same houses. Investment bankers are going to be great landlords and I will clean their clocks but they will take inventory out of the market.