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1)Bailout the banksters who foreclosed on millions of homes 2) Banksters use bailout/QE to buy homes for pennies on the dollar 3) keep homes off the market to drive up prices, then once home prices are positively bubbling, rent to families at inflated prices! Kaching!!!
And this: Do they call themselves BlackWood to indicate their social/economic uselessness and spiritual rot?;
But heah, the Chinese are getting in on the action;
So maybe the cycle's subtext is 1.de-industrialize/financialize (and militarize in light of the inevitable unrest) 2.Outsource every damn other nonmanufacturing thing you can 3. Invite the countries you've made rich to buy up the rest of the country. You can always fly off to Switzerland, Brussels or view it from your fortified digs.
It would be a fitting justice if President Bernie would use Corbyn's idea and fill these houses with poor families/students/ex-students/the aged and the homeless at the appropriate deflated cost the banks/hedgies paid.
But don't forget! QE is fine and moral when used to help rich people but evil when anyone suggests using it to bail out the millions of peopke buried by student debt for degrees made useless by HB1 visas!
The banks didn't BUY homes, they simply partially foreclosed and tossed out the homeowners- then kept them as shadow inventory until it was good for their books to finish completing the process and sell them in tiny drips onto the market.
The investor-owned vacant homes are an entirely different group of housing than shadow inventory, even if to the passing eye they appear the same. And nothing short of govt seizure of private property legally owned and not subject to ED will result in their sale and use by others. Something no one at all should advocate or excuse...
The first, however, could have been prevented by firm govt forcing of the full process to resale as soon as any fc is legally started. This was possible as a condition of QE or such, but clearly they did not do so.
If they had placed them into receivership, the Fed gov could have liquidated the assets and legislated a "bailout" to the foreclosed homeowners? No?
Reclaim the commons!
There are lot of publicly owned government buildings that are unused and underused. They could easily be modified for the common good -housing, preschools, after school care, senior centers, community center.....
Have I shared this with you before? Long and detailed book review about just how the commons were shut down, and implications on women and power:
The book itself is available online as a pdf with a free for non commercial use note on page 3:https://libcom.org/files/Caliban%20and%20the%20Witch.pdf
You’re so kind to send these things my way. Thank you! I’m going to order it today on Amazon🤮
did you like the review? I keep opening the pdf of the book but keep getting distracted :) am pondering a book club post in a couple weeks...
I love the review and plan to make time for this book. It reminds me of a book I read some time ago that made me really question the fundamental premises society relies on....Cows, Pigs, Wars, and Witches
Your idea of a book club post is terrific. Only thing, no one reads anymore. I’m the most avid of readers, and even I have a hard time regularly sitting down with a book. The post would be a good reminder to get off the timesucking, mind numbing internet for a bit. We all need to find our center, there’s a big fight ahead in 2020, we must be ready. Picking up my Sun Tzu now....
Oh! Thanks for the link!
This highlights something most people don't understand about the economic ecosystem.
With the recent tax cuts, the people on the bottom end of the spectrum may only get $1.50/week "extra" in their check because of it. They might be dumb enough to think that's good, but most of them probably realize they're getting screwed.
However, people further up the chain might actually think this works out for them. They might say "Hey, I'm getting an 'extra' $50 or $100 per pay check. Nice!". But what they fail to realize is that economics is an ecosystem, not a vacuum.
The problem is, the people above them also get more money. A lot more! And what will they do with it? Sure, some will go into inflating our stock market even further. But they'll be smart enough to diversify. And so another chunk will go into, historically safe, investments like real-estate. And this is how we've arrived at rich people bidding out each other to push housing prices in big cities into the stratosphere, to the point where even highly paid professionals, find it hard to pay rent and almost impossible to buy.
So sure, they might now have an "extra" $200/mo. But when their rent eventually goes up $300, guess who really wins? Hint: nobody in the working class does...
and absentee-landlord vacation housing. alot of OR coastal towns are beginning to look at laws to restrict the vacation rental market. 2 yrs ago, my town of <10k lost ~60 rental units in 1 month. All turned into vacation rentals. The majority of those turned out were those the local hotels & restaurants depend on. It was the beginning of tourist season and there was a whole wave of people all over town working 50+hrs/wk who were sleeping in cars and on couches.
“To ravage, to slaughter, to steal, this they give the false name of empire; and where they create a desert, they call it peace.” ― Tacitus
And by that I mean the US is becoming a Wasteland, a Paradise Lost. Wasting the talents and energy of the citizens, wasting blood and treasure, wasting the planet, all for what?
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Lots of homeless don't want to be in homes.
What are you thinking? Taking homes from some people and distributing them to others? That's communism, not socialism.
Not taking! Forcing the banks to be paid the bailout price, the pennies on the dollar price the banks paid to buy up these foreclosed tranches using taxpayer dollars.Otherwise, the banks succumb to moral hazard, benefitting from their taxpayer bailouts/QE. Say we just allow previous foreclosed homeowners to pay the depressed post bailout price in order to prevent the true welfare Queens, the Banksters, from making more tax payer subsidized money? Is that communism? Allowing the tax payers to benefit rather than the Banksters? Or alternatively, allowing the government to buy up the houses for low rent "public" housing? Isn't that socialism? Just as socializing the banksters' losses was socialism? (Yeah, I know about the Hobo Philosophy, but the homeless I give to and talk to regularly, do want a home, just one they can drink and smoke cigs in. Many VETs are in this category.)
Well, you have interesting points, but in this post, it says the homes are owned by investors, not bankers.
A more pronounced case of this would be Canada, where the Chinese have parked their money in Canadian real-estate but don't live there. This has caused a shortage. So what to do? Take their property???
Good point about this being Hedge funds and not banks. I shouldn't have conflated them. Nevertheless, Obama et. al. should have taken the banks into receivership because they were broke and therefore had utterly failed the free market capitalism test making bad bets and then Obama should have taken all of the foreclosed homes as collateral and rented them at a price that reflected the economic times, perhaps tied the rent to some economic indicator, so as the recovery kicked in the prices would rise. And yes, he could have used them as public housing. If the Hobo's wish to form mini communes,smoke and drink, let them.
As far as the Chinese, or any foreign, communist or otherwise, government, buying up great swaths of land/housing in another country, capitalism is all for it. Property rights are supreme. But it does seem to potentially pose a threat to sovereignty, particularly, in the case of arable land and in the case, when the bought up country is at war with the foreign property owning country.
Regarding the 2008 meltdown, I believe it was by design, but that's not of interest to me anymore.
You brought up the impending war with China, and stated that the government was buying the properties, but I do not believe that is the case, I'm fairly certain it's people attempting to shield their money from the Chinese government and live in freedom.
When the war does come, I'll be paying attention to how they will be classified. They are not so great in number really that shielding them will give Canada any tactical advantage, while taking their property will make the common man feel to have achieved some small victory... yet China will use this to point out the duplicity of Western society.
But on the other hand, I know damn well what will happen to property owned by Westerners in China.
Such good points, getting at the subtlety/paradoxes of it all! Agree, 2008 was engineered by design! How else were Steve Keen and Reinhardtboth able to predict it with such accuracy (and in Reinhardt's case, with such accuracy and precision!).
I used to read Reinhardt's now defunct blog, enterprisecorruption because he based everything on his view of history and because who doesn't want to learn about underpinnings of corruption?
Taking homes from some people and distributing them to others?
Unless it's a deal cut by capitalists for capitalists - then it's Foxconn.
Jesus that was slimy! They're following the pattern that Wal-Mart trail-blazed, pay workers poverty level salaries so the govt. pays the rest.
One weak counter-argument is that the eminent domain laws requires paying 'fair market value', which will be distorted of course.
In the comments I read that eminent domain can only be applied for (blah blah) government projects, so maybe it can be stopped?
But regardless, I'd rather be in the US than Russia or China.
In THEORY ed is limited...
In reality, local and State govts often collude to force it through- and sometimes on the Fed level too.
Corruption permeates all.
If these people are smart they'd do something to draw media attention to get a fair (forced) deal.
Liberal elites media backs the play of liberal elite politicians and power.