So the banks create the housing bubble by loaning to anyone and everyone, driving way up prices until 2007 when loans dried up, causing markets to crash. Then, the Treasury issues $800 Billion of taxpayer debt to bailout the banks, no one goes to jail, the bad homes go on the US taxpayer balance sheet and the banks get the cash.
The banks then go out and buy up the distressed houses in traunches (pools of homes) at a time and now the hedge funds, like Black Rock, run by the Trilateral Group, buy at low prices and raise rents on all, further squeezing out the middle class from being able to pay for basic food, water, utility, etc. Amerika! Amerika!
It used to be that a college graduate could save money to afford a down payment to buy their first home, then the seller would use the equity to buy up to a bigger, nicer home and move the food chain up from below. That model of the past 50 years is now destroyed.
Bye Bye Middle Class: The Rate Of Homeownership In The United States Has Hit The Lowest Level Ever
The percentage of Americans that own a home has fallen to the lowest level ever recorded. During the second quarter of 2016, the non-seasonally adjusted homeownership rate fell to just 62.9 percent, which was exactly where it was at when the U.S. Census began publishing this measurement back in 1965. This is not what a “recovery” looks like. All throughout the Obama years, the percentage of Americans that own a home has gotten smaller and smaller and smaller. The reason for this, of course, is that the middle class in America is dying. Last year, we learned that middle class Americans now make up a minority of the population for the first time ever. In order to have a high rate of homeownership, you need a thriving middle class, and you can’t have a thriving middle class without good paying middle class jobs. This is why I write about the evisceration of the middle class so extensively, because the U.S. economy is systematically being hollowed out and most Americans don’t understand what is happening.