Think Progress
Bad news for American families is great news for the financial industry, according to the real estate finance industry trade magazine CRE Finance World (CREFW).
Workers’ incomes will continue to decline and homeownership will become an ever more remote dream for the typical American, boosting demand for rental housing and pushing the cost of rent up, an article in the magazine’s new edition says. That will cause the market for rental housing securities — complex financial contracts backed by rental properties — to explode over the next year, Deutsche Bank analyst Harris Trifon writes.
Wall Street Is Drooling Over The Money It Will Make On Americans Who Can’t Afford Houses
Alan Pyke
First, securitize the mortgages, then foreclose, then securitize the rents. What could go wrong?
"Workers’ incomes will continue to decline and homeownership will become an ever more remote dream for the typical American, boosting demand for rental housing and pushing the cost of rent up..."
ReplyDeleteThis what we get for bailing out Wall Street. Best way to prevent banks from becoming too big to fail, is to start letting them fail.
Wall Street will over invest in Rental Property and the investors will get stiffed again.
ReplyDeleteThey take down one crane and another two go up building office towers and apartment buildings, I don't know if the whole nation is experiencing the same thing... but sort of crazy for the last few years.
And further damage to the role of community in American life. When people buy a house they often invest themselves in the community in which the house is located. When whole neighborhoods are turned into just a kind of sprawling apartment complex of rental units, say goodbye to vibrant communities and effective self-government. All that will be left are manager-landlords and renters.
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