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 threadJeff ByrnesMay 9, 2023

@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.

Show threadDan SeitzMay 9, 2023

@jeffbyrnes

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.

Show threadDan Seitz
@jeffbyrnes That's the other thing with these PE firms, these clowns are hoarding new housing, especially in areas like the Sun Belt.
May 9, 2023 at 5:21pmWeb