Thom Hartmann: The Banksters Are Now Setting Up the Crash of 2016

[marmar]

The Banksters Are Now Setting Up the Crash of 2016

Monday, 02 December 2013 15:05
By The Daily Take, The Thom Hartmann Program | Op-Ed



.....(snip).....

Right now, millions of Americans are still struggling to recover from the 2008 financial collapse.

That collapse was fueled by the housing crisis, when Wall Street banksters were running around betting on risky mortgage-backed securities that they could sell to investors and make billions from.

They were able to do that because the Graham-Leach-Bliley Act and the Commodities Futures Modernization Act had blown up rational banking regulations, and, as a result, we saw things like the so-called mortgage "liar loans".

.....(snip).....

Banksters can't run the same scam as they did during the housing crisis.

So, they've found a new way to come up with real-estate-backed securities that can be turned into derivatives, worth billions in profits.

How? They've become landlords. ........................(more)

The complete piece is at: http://truth-out.org/opinion/item/20378-the-banksters-are-now-setting-up-the-crash-of-2016

[G_j]

1. TomDispatch: Laura Gottesdiener, Wall Street's Rental Empire

http://www.democraticunderground.com/10024105252

[xchrom]

2. du rec.

[rurallib]

3. Saw Thom discuss this on his show yesterday

scared me to the core.
Elizabeth Warren and Alan Grayson are the only congress critters that seem even remotely interested in this.

[Eleanors38]

4. The scam's beauty is that, for now, it is inflation-proof.

[cthulu2016]

5. Sorry, but this article is nonsensical

Unless the author is claiming a speculative bubble in rent that will collapse, leading to dramatically lower rent there's nothing here that makes sense.

Just a bunch of boilerplate doom-saying and economic illiteracy.

[indie9197]

6. My reaction also since the author didn't tie up the loose ends

But maybe they are inferring that the banksters and hedge funds are now making money by paying cash for distressed properties and now renting them out for a significant positive cash flow- something that you or I would not be able to do because they won't loan money to us for "investment" property. It would be too risky

[Auggie]

7. People who will get hurt are Blackstone's (and other) investors, local homeowners and renters...

particularly institutional investors managing pensions. Local homeowners will see their property values decline as these rental units fall in disrepair.

Renters are losing out on home equity that would aid in their retirement. We may have a crash in 2016, but the real hurt will be 15 to 20 years from now.

[rusty fender]

9. The author was right about the crash

in 2007; his hypothesis is not as easily dismissed as you have done.

Hartmann is not "doomsaying", he is warning us of a real threat.

[rhett o rick]

10. The crash of 2008 was the most profitable capitalistic event in my lifetime (and I am old).

Those that perpetrated the crash were rewarded. There is no conceivable reason they wont do it again. nm

[Laelth]

8. k&r for the truth, however depressing it may be. n/t

-Laelth