The nightmare scenario here is these clowns go all in on hog anus futures or some other "can't miss" bet that even a five year old would tell you will miss, and lose such a staggering amount of cash they have to start selling off assets.
Imagine 1% of your city's housing stock going on the market for like 5% of its value.
Interesting. Thank you!
Bailing out a PE firm seems unlikely. Leaving aside how politically unpopular it would be, if an insurer or a bank tanks, there can be serious problems (see SVB having literal payrolls on its books) A PE firm is basically just a casino with better odds and a much higher buy in and most of its assets can be sold to cover its debts.
The problem comes with the timing of that sale, to who, and the effects on the wider market for homeowners.
My slightly lesser concerns is these clowns try to grow their way out of every stupid mistake by buying things that are steadily profitable and just thoroughly squeezing them. Part of the problem in the newspaper industry right now is Alden Global Capital, which keeps buying papers even as it keeps fucking up.
@Dseitz I think a glut of homes at fire sale prices would be good for lots of folks? I mean, doesn’t help me the homeowner, but I literally don’t care about that (my home is for shelter, not for wealth).
Anyway, building a lot more homes all over, and a land value tax, would discourage this kinda thing.
It'd be good for me too. Honestly my concern would be more with people who were house-poor or close to it, or with a house as their sole investment, getting screwed over the long term. While I have no desire to pay exorbitant home prices, I also don't want people to lose their homes. And you're 100% right, we need more housing and a land value tax, bare minimum.
Dan Seitz
KLB
Jeff Fecke
Jeff Byrnes