Big Companies Hold $60 Billion in Real Estate

 

But those big companies are not really to blame for this
reality ... the government is

But is it their fault?


That's right, giant Wall Street companies have huge holdings in
real estate. However, while the media would like you to believe
that this is some kind of sin on the part of these companies, the
real sin is HOW they ended up owning so much
residential real estate. Lets talk about how we got here and how
it was clear from the beginning that this was likely to happen.


Way back when all of the foreclosed homes that ended up being
held by the government needed to get sold, a plan was hatched.
Instead of selling each property individually, they would be
bundled together and sold in huge chunks. Maybe we should not
judge the motivations on this decision. Perhaps the prevailing
opinion was that these homes needed to be out of foreclosure and
back in the usable market place as soon as possible. At least
that might be one thought. But the easily anticipated
consequences we see now should not have been a surprise. This
basically made it impossible for anyone but huge corporations
with lots of cash (or big credit) to purchase the properties. We
covered this on this show at the time and pointed out the
downside and possible other options that would be better for the
market. It now appears that we were right all along.



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