New Housing Bubble: Prices Up, Ownership Down, Wall Street a Mega-Landlord: “America is Becoming a Nation of Renters”
Mac Slavo
January 31st, 2015
SHTFplan.com
Want to own your own home, but stuck, temporarily, renting until you can? You aren’t alone.
Wolf Richter outlined a pretty eery scenario.
The 2008 financial Armageddon was in larger part a result of the housing bubble bursting. Thanks to the subprime mortgage scandal, millions of homeowners were put in homes they couldn’t afford, making the awful game of musical chairs an inevitable and tragic charade.
Maestro to the musical chairs was Goldman Sachs, who unbeknownst to the public, was selling toxic securities for risky mortgages, while secretly betting on the collapse of the housing market. According to McClatchy:
In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting.
Everyone was swept up in the chaos. Goldman Sachs and the other banks got bailed out. The public absorbed the costs, and the Federal Reserve set out on the biggest intervention since World War II.
The Rest…HERE
