Most news stories take this for granted. They shouldn’t.
Zoning is a powerful tool.
Providing some relief to underwater homeowners seems like a reasonable thing to do. But using eminent domain to seize mortgages (which likely is unconstitutional – but hey who knows anymore) and then refinancing them through a politically connected company with long tentacles in California and national government isn’t right.
Nothing shady ever goes down in Las Vegas.
Wait, what I meant to say is that the city is a seething cauldron of corruption where the American dream goes to die.
The bailouts have benefited those closest to the fiat money spigots. Those in banking and in government around the world have seen their wealth rocket up thanks to loose money from the central banks. Times have been very good for the connected, and they’re buying mansions hand over fist in South Florida turning that fiat money into little pieces of coconut palm lined paradise.
Now comes a new bailout for our lucky friends who may not now have to pay market rates for insurance premiums. In Florida and many other places this is serious money, which will soon be the responsibility of the US taxpayer.
Charles Hugh Smith asks this. The answer is simple.
All hell breaks loose.
I can attest to this. I live outside of Washington DC and houses are moving. This is the land of guaranteed employment and home to the wealthiest households on average in the United States. The main reason? The primary industries here are regulation, wealth extraction, and war. “Growth” industries as of late.
China is overbuilt, over leveraged, and over managed.
Did I say wind down? No I meant expand! —The President comes up with a new scheme for bailing out underwater real estate investors and Wall Street firms stuck with “toxic assets.”