Matt Taibbi, Rolling Stone: Another Hidden Bailout: Helping Wall Street Collect Your Rent

[Amerigo Vespucci]

Another Hidden Bailout: Helping Wall Street Collect Your Rent

http://www.rollingstone.com/politics/blogs/taibblog/another-hidden-bailout-helping-wall-street-collect-your-rent-20120319



A foreclosure sign sits in front of a home for sale in Stockton, California.

Here's yet another form of hidden bailout the federal government doles out to our big banks, without the public having much of a clue.

This is from the WSJ this morning:

Some of the biggest names on Wall Street are lining up to become landlords to cash-strapped Americans by bidding on pools of foreclosed properties being sold by Fannie Mae...

While the current approach of selling homes one-by-one has its own high costs and is sometimes inefficient, selling properties in bulk to large investors could require Fannie Mae to sell at a big discount, leading to larger initial costs.

[RobertEarl]

1. And what is really great is...

They can borrow the purchase money from the fed for 1%.

If the people in general had the same finance opportunity then the field would be level.