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“private equity” is not a company, its an industry - so its not clear to me why only one private equity company at a tine would try to cash in on this opportuni
by ghufran_syed 6y ago
“private equity” is not a company, its an industry - so its not clear to me why only one private equity company at a tine would try to cash in on this opportunity? And if several such companies are trying to do the same thing, then its unlikely that any of them will become a monopoly.
Its like worrying about “real estate investors” getting a “monopoly” on the ownership of houses - it’s not going to happen. Real estate investors are part of the market, and having an additional source of demand tends to raise prices, which is bad for new buyers and good for existing homeowners. But there is no monopoly.
- anonAndOn 6y agoWhile we may never see a monopoly on owning the house itself, we are well on our way to seeing at least one monopoly in the home buying process. [0][1] [0]https://www.alta.org/business-tools/title-insurance-mergers.cfm https://www.alta.org/business-tools/title-insurance-mergers.... [1]https://www.ftc.gov/news-events/press-releases/2019/09/ftc-challenges-proposed-12-billion-merger-title-insurance https://www.ftc.gov/news-events/press-releases/2019/09/ftc-c...
- ghufran_syed 6y agoOr we would if the FTC didn’t try and block it - isn’t this the way an antitrust regulator should work?
- anonAndOn 6y agoYou are right that the system worked as intended, for now. Give it a little time and a few more lobbying dollars. This opportunity is too lucrative to pass up.