Wall Street firms buy housing up - Blackstone owns 10,000 houses

[Blaster man]

First they make fortunes and create a catastrophe. Then they're bailed out (note that the employees kept their fortunes). When housing finally stabilizes, they go in and buy up the inventory to rent it out then finally in a few years from now, they sell the houses for a massive profit. You've got to love how these guys can profit from both sides of the catastrophe they created and screw over everyone else in the process (twice).
http://www.bloomberg.com/news/2012-...-two-year-window-to-buy-houses-mortgages.html

Blackstone, the world’s largest private-equity firm, has spent about $1.5 billion on 10,000 foreclosed properties in the U.S. this year, making it the biggest buyer of single-family homes in the country, Gray said. Blackstone has been buying $100 million of houses a week, Stephen Schwarzman, chairman of the New York-based firm, said during an Oct. 18 earnings call.


The good news out of this is that Wall Street has decided that housing has bottomed. That means that even if it hasn't bottomed, they'll make damn sure that it has by squeezing housing supplies. The time to get into the market low is coming to an end.

 

[Trancendental]

[quote name='Blaster man']First they make fortunes and create a catastrophe. Then they're bailed out (note that the employees kept their fortunes). When housing finally stabilizes, they go in and buy up the inventory to rent it out then finally in a few years from now, they sell the houses for a massive profit. You've got to love how these guys can profit from both sides of the catastrophe they created and screw over everyone else in the process (twice).
http://www.bloomberg.com/news/2012-...-two-year-window-to-buy-houses-mortgages.html

Blackstone, the world’s largest private-equity firm, has spent about $1.5 billion on 10,000 foreclosed properties in the U.S. this year, making it the biggest buyer of single-family homes in the country, Gray said. Blackstone has been buying $100 million of houses a week, Stephen Schwarzman, chairman of the New York-based firm, said during an Oct. 18 earnings call.


The good news out of this is that Wall Street has decided that housing has bottomed. That means that even if it hasn't bottomed, they'll make damn sure that it has by squeezing housing supplies. The time to get into the market low is coming to an end.[/QUOTE]

I'd say it was good someone was buying foreclosed houses if I didn't know that banks have been pre-emptively foreclosing houses without making a good faith effort to come up with a payment plan for mortgage holders.

The banking system is majorly ed up.

 

[perdition(troy]

This is terrible. Blackstone should be losing money instead of trying to make it!

 

[Blaster man]

[quote name='perdition(troy']This is terrible. Blackstone should be losing money instead of trying to make it![/QUOTE]

I'm not saying that at all so stop being a dumbass. I have nothing against these guys making a profit. It's just wrong that we bail out Wall Street then they come in and screw over the little guys that did not get a bail out. I think it's great that they're helping speed the housing recovery though this is certainly going to further limit supply and increase prices for folks looking to buy.

 

[Clak]

It seems to be established that banks at this point cannot really fail. One way or the other, they're going to win no matter what the game is.

 

[perdition(troy]

They have politicians in their pockets, of course they will never lose.

 

[UncleBob]

[quote name='perdition(troy']they have politicians in their pockets, of course they will never lose.[/quote]

+1

 

[nasum]

vacant properties with unpaid mortgages = loss
owned properties with sale potential = profit

what did you expect?

 

[Trancendental]

[quote name='nasum']vacant properties with unpaid mortgages = loss
owned properties with sale potential = profit

what did you expect?[/QUOTE]

I expect that simpletons will look at this story in isolation and scratch their fool heads.

 

[EdRyder]

Ha. They always said housing would bounce back.
They create ,build , destroy the scarcity.Then rinse then repeat.
Consumption junction whats your function.

How did we bypass the part when you could've got a McMansion for pennies on the dollar? The next time a real estate lady tells you its a buyers market give 'er a smack.

 

[Blaster man]

[quote name='EdRyder']Ha. They always said housing would bounce back.
They create ,build , destroy the scarcity.Then rinse then repeat.
Consumption junction whats your function.

How did we bypass the part when you could've got a McMansion for pennies on the dollar? The next time a real estate lady tells you its a buyers market give 'er a smack.[/QUOTE]

It's not a buyers market in most of the country any more. 2 or 3 years ago it was for sure.