Meanwhile if BlackRock became insolvent, the government would bail them out
I find it interesting that during the mortgage crisis, banks couldn’t wait to unload the housing they were left with at fire sale prices, and now investment firms are overpaying to monopolize the housing supply.
It certainly doesn't help that it's literally illegal to build enough housing across the vast majority of urban land (at least in the US and Canada). Nothing like good ol' fashioned manufactured scarcity to guarantee line keeps on going up.
It's the mother of all regulatory capture, where our local governments (who are supposed to represent the needs of the people) have passed so many frickin laws to systematically manufacture and maintain the artificial scarcity of housing that keeps these ghouls' investments so wildly profitable. Restrictive zoning that makes townhouses and duplexes literally illegal? Check. Arbitrary and pseudoscientific parking minimums? Check. Setback requirements so everyone is legally required to have a massive resource-consuming, space-wasting front lawn whether they want it or not? Check.
Utter insanity.
A friend of mine wants to build a small house on land he legally owns, but he's forbidden by municipality law unless it's a luxury home.
It's dumb. He owns the property, but he doesn't have the money to build a luxury house. Why can't he build a small house?
I guess not dedicating your life to pay off your house is illegal.
Except this is because of zoning and zoning exists because of racism.
How many single parents with four kids can afford a house?
I think people misunderstand what BlackRock does. It's a proxy for other investors. Investors all around the world buy assets, produced by BlackRock and BlackRock routes that money into corresponding shares/bonds/real estate, etc.
The word "Produced" is doing some heavy-lifting in that sentence. When I hear "produced" I think of a factory making stuff that has value or a farm producing food.
produce /prə-doo͞s′, -dyoo͞s′, prō-/
intransitive verb To bring forth; yield. "a plant that produces pink flowers." To create by physical or mental effort. "produce a tapestry; produce a poem." To manufacture. "factories that produce cars and trucks."
Sounds like the word fits just fine. The investment firm "brings forth" the investment opportunity that someone without financial advisors and millions to invest needs to get into real estate through eREITs. That opportunity wouldn't exist without them providing the service of connecting investors with and managing funds for the investments.
I believe in the classic Homer Simpson line this covers the "services" portion of "money can be exchanged for goods and services."
I think Zach Wilson would be doing something else with the single mom
There's only 12 people on Lemmy who will get this joke which is a shame, because it's fantastic
I just want to know what Zach's mom is doing these days.
this guy just knows there's a lot of cocaine out there and it's against market principles to let it go to waste
What single mother of 4 is even shopping for, let alone bidding on, an actual house?
A single mom who works two jobs who loves her kids and never stops. With gentle hands and the heart of a fighter...
That cut is deep.
Really. This post doesn't make sense. Wasn't there a post like a few days ago saying most Americans can't survive a sudden expense because they can't save 1000 USD?
Then how come now they can bid for houses?
everyday
You mean 'every day', in English. #noChildLeftBehind
I am no BlackRock lover, but at some point you should ask yourself: "do I need more kids?".
No idea. Do those billionaire shitstains need all that money? We should take a few billions from them and see, and then go after your totally real not made up strawman.
Society as we know it is going to collapse unless we have more children. Queue Dingledufus, "It's your fault for having kids!"
You can't make up this level of bootlickery.
Ummmm let them have it. They are overpaying anyways.
That doesn't matter. Once corporations own enough of the housing market, they can literally sit on them and never sell. Then people will be forced to rent at whatever prices they want to charge. Initial high cost will be offset quickly by forever rents.
I used to think this way, but after being a home owner, a home is a depreciating value. Couple that with home repairs, bad renters, high taxes, and general business operations cost. Initial overpayment for a home will not let you pay return.
