Really all that does is let demand determine the market. In Seattle just finding a place to rent is difficult and you pay or walk.
It’s interesting and disheartening that, so far, many of the comments focus on the bait instead of the hook. The cars, while important to the scheme, are not the main thrust of the article, IMHO. what is really important is that this has similar aspects to the subprime mortgage fiasco. In that case, the securitization of the subprime mortgages led to huge numbers of faulty loans being packaged and sold as AAA securities to private investors, investment houses and pension plans. And when the mortgages defaulted in mass numbers, which was pretty much inevitable, the security holders took a bath as did some of the brokerages that sold them. The ones who bet against their own product, Goldman Sachs for one, came out on top.
Hightower seems to be saying that this is a similar situation that could result in similar financial dislocations. It’s not about the cars, it’s the securitization of bad loans that he sees similar to the previous financial collapse and is something he considers rather worrying. Not sure why the discussion has focussed on, what to me is a distraction, the cars rather than this important issue.
Strong sanctions? How about 20 years in the Supermax? They are more dangerous to the U.S. than the so-called Islamic State.
Nice to hear from you, 4thefuture, You are exactly right. We’re heading, like sheep, down the same path to financial oblivion. It’s not about transportation; it’s public indebtedness and lack of bankruptcy protection. What we used to call Usury and, it’s being applied to Countries Worldwide as Austerity…
You’re missing the point completely. Mr. Hightower is making the point that this is simply more of the same from WS, dealing in sub-prime loans with a high payout. Not on the same scale as a home foreclosure but still, same sleazy WS practices, bundling sub-prime loans to be sold to investors. The difference is the investors know they’re all sub-prime. Not anywhere near the fraud of 2007-08 crash but why not invest in Americans with small businesses instead of chasing the quick buck?
I believe there’s a few things you’re not bring to the table.
- Per you’re above comment, most of the locals couldn’t compete with investors because at this time the banks had tightened their requirements. 20 - 30% down payment. Not chicken feed during a recession for average Americans.
- The banks had very little of their capital tied up in these homes. They got paid selling the investments, they got paid from the insurance co.'s when they insured the investments (actually betting their investments would fail), they got paid by us with their bailouts.
- A % of these houses can’t be sold (I’m not sure what the % is), because they don’t have clear titles to the properties. The robo signing was fraud on the courts, and they never paid local and state taxes on the sales, (There was a computer program invented to avoid these taxes).
- You live in Denver, one of the best growth markets in the country right now, most of the rest of the country doesn’t have this benefit.