(1) America's elite creates a housing bubble
(2) America's elite forecloses on the residents
(3) America's elite buys the houses at low cost, then rents them back to the residents.
While I'm not going to suggest anything conspiratorial, when I first thought about the 'easy mortagages' trend and the fact that the property itself was the collateral, the perverse incentives involved seemed so obvious that I assumed there must be a large mitigating factor I wasn't aware of.
One thing I don't fully understand, why don't the lenders themselves auction of the properties rather than keeping and profiting off the foreclosed properties themselves?
(1b) American taxpayers bailout insolvent securities firms whose whole business is supposedly predicated on competent risk assessment as a core skill yet totally ignored best practices to threaten the entire economy.
(1c) Pays themselves handsome commissions.
(3 addendum) buys the houses at a low cost made so by the bubble they created _with the bailout money of the taxpayers!!!!!_
(4b) destroys communities, defunds schools, further atomizes and disorganizes the modern American society
One thing I don't fully understand, why don't the lenders themselves auction of the properties rather than keeping and profiting off the foreclosed properties themselves?