a great news for yes there's another housing bubble
yanni rejoice now I remember last time the bank's
you play to the bubble I by going around in giving the
easiest more resolve all time and they would have literally no documentation
more than just a black okay
how you say you're incomes a million dollars bingo
here's your house okay idoney and documentation on it I don't care
you know if you can actually show me what your salary is or your wealth is
of ego why were they doing that now if your bank that seems like every detail
is thing to do
and the then I could be able to pay their mortgage in its gonna explode on
you wrong
they already sold off those mortgages so they made money on the fees etcetera
and then they got rid of those were insulating care what happened but more
importantly
they would then turn around and bet on those mortgages
and a director is a bets that they made on those more views were mocha polls
about the house was worth so that allowed massive trillions of dollars
where the gambling right now the problem is once a bus that casino
now of course the government in bus that the busted in are on itself
it imploded right and then export they're paid it caved in
and housing bubble burst and a whole market when up
underground and then was and literally the houses were under water is as they
say in the financial world
right so once all that happen well then they didn't have the funder relatives to
back with an so those who you know exploded and they're gone right
so they need new ones now it that they were the housing market was not the only
thing they had derivatives on
but it was a fun little racket that they had got
saw how are the rebuilding it now get a load of this
now the banks were saying oh yeah well you said we did ask for documentation
now with aspirin time documentation and we're gonna require incident like me
nothing down as they were doing at the height of the
last bubble now they're saying you gotta put a huge percentage down your down
payment
has to go in serbian 10 percent to 20 percent as me 30-40 percent in some
cases
well there be more prudent that's good right now here's how the new scam works
so the bank's since you can't buy it great
and you don't have enough for a down payment animated extraordinarily hard
for the documentation and a down payment and they have all the cash
they're going in and buying houses themselves is an interesting
so why are they doing so made by the house is then they turn in the rental
properties
me while they're driving up the proper prices for on the house by the eggs are
limiting the market that's another part in this racket but meanwhile there
the rental properties they like well we were dominating this market
so we really have to take care those rentals so there's a story about a woman
that having a POS covered
where there's mold inside the house their abuser
take care but for a long time and that when they finally do something at the
mall they paid over
I don't know how mode works that those really help their front doors
broken so anybody can just walk in in the middle of july their condition
breaks
they won't fix it for nearly a month right because they don't care
now part of it is that if they almost have a monopoly in the market in some
markets as I explain to you in a second
and part of it is that's not the real racket
the real racket is to revenues betting
on the rental income here we go again
but okay their reconstituting that casino man
XE no word well for for a long time every last time we got busted up
more got bill that anyway so now some groups are under let me take 75
different housing consumer groups got the other wrote a letter to the
government saying
we are poised to experience another crisis if federal regulators failed to
recognize and take corrective action
to address red flags that are all-too-familiar
of course they're right about that now to back them up let me be the case a
riverside california
in Riverside nearly one-third of tenants are spending more than half their income
on rent
is an amazing so less obviously unsustainable
those renters are eventually gonna say it nomas I can't pay that rent
night so when they do that the bonds that these bankers are setting up
they're gonna crash guess who's going to be betting against those bonds they set
up
the same banks that's a scam that Goldman Sachs Rep
they would make money by setting up bonds betting on the housing market all
of it does what no problem set up arms
use EDS go get 'em okay where to buy that many turnaround in the would do
a short on it a short means betting that it crashes
so a any understand that Israel a few companies are buying up but
hola this real estate and they're actually plans for private equity group
it that's not to say that it's the various private equity group is hey it's
Mike
real estate company right for example in atlanta institutional buyers like
hollywood's while the major
a new housing companies accounted for one in four sales in December
is an amazing a wallet new home sales in atlanta up
or love them went to this one company not the real human beings
it's not like Mary and John are moving in down you you don't know who to give
the blueberry pie to you that given the colony I guess
because they're buying up all the houses if you think this is a building up
another mobile
you don't know others that works again so one of the largest group is called
Blackstone I'm
and Blackstone after buying up these house in doing the rental
well guess what they did now they're to issue bonds backed by the rentals valued
at $479 million dollars
they started that in October over last year and they're only getting bigger
in fact the estimate is those market for new bonds will be up to
seventeen billion dollars a year by 2060
here we go low that bubble backup
only God knows what'll explode will the government do anything about it
cool a bail him out after blows up problem
because then the very famous words a dick Durbin now
about the bank's referring to capitol hill frankly
they on this place