Dan SeitzMay 8, 2023
Me: PE companies buying up homes is going to end in disaster, I'm just not sure what the trigger will be.
Money Stuff: Hey all those guys buying houses are starting to issue loans, but unlike banks they're basically unregulated.
Me: Annnnnnd there it is.
Show threadDan SeitzMay 8, 2023
Letting PE firms buy homes is inviting disaster because financial firms are surprisingly fragile even when well regulated, which PE firms are most certainly NOT, but pair this with what amounts to firing up the clock on a guaranteed "out of nowhere" crash and that's your next 2008 right there.
Show threadDan SeitzMay 8, 2023

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.

Show threadDan SeitzMay 8, 2023
Which of course assumes somebody isn't already committing fraud by keeping those overpriced rentals off their books. Not a bet I would take tbh.
Show threadKLB
@Dseitz related/similar dynamic — Fulton county in Georgia sells its property tax liens in a weird way. I heard this article this morning. https://www.wabe.org/how-we-reported-on-fulton-countys-tax-auctions/
How we reported on Fulton County's tax auctions - WABE

Fulton County Fulton County’s Tax Commissioner’s practice of selling liens to investors has received significant scrutiny. In the past two decades, journalists have examined several different consequences of the system. […]

WABE
May 8, 2023 at 8:11pmWeb
Show threadDan SeitzMay 8, 2023

@KLB

Interesting. Thank you!