Are rental properties the next bubble?
Packaging up piles of mortgages and slicing and dicing them into small pieces for anonymous investors brought the American economy to its knees four years ago. Now the bankers are going to do the same thing with collections of rental houses that they've bought in foreclosure. When the bankers' latest scheme go down, we taxpayers will doubtlessly be called upon to bail the sharpies out.
Meanwhile, a recent ruling by the state supreme court in Washington could be opening the door for various levels of government to show up and take over properties covered by defaulted mortgages, by condemning the mortgages. You may wind up with Jeffer-Sten Smith or Farquaad Cogen, or even Metro Rex, running new government banks. It just gets crazier by the day.
| Posted at 8:46 AM | Permalink |
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Comments (3)
Suddenly, the frantic push to build new no-parking apartment cubes, all across the US, makes sense. Ten years ago, we were all told that it was our obligation to buy a house because developers felt that apartments were unprofitable. Now the housing market has imploded, and you're seeing new apartment blocks everywhere. Not just any blocks, though: these are for the hip, happening "creative class" that is scheduled to rampage through Portland, and Seattle, and Fort Worth, and Peoria, any day now. Any...day...now. Just you watch.
Posted by Texas Triffid Ranch | August 28, 2012 9:58 AM
Living near an urban core only has value when desirable services, income, and livability are are easily accessible in the area, which by all accounts are on the decline, in spite of and because of planners attempted engineering of preferences and economies.
Posted by Mr. Grumpy | August 28, 2012 10:44 AM
Livability is on the decline, except in buzz words to make people feel otherwise
or to convince with the attempted social engineering,
all for the children, all for the UGB, all for the planet.
All for what really?
Posted by clinamen | August 29, 2012 10:05 AM