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Maybe you missed the part about a bail out. That's not a transfer of wealth from bankers to commercial real estate companies, it's a transfer of wealth from the
by rcme 3y ago
Maybe you missed the part about a bail out. That's not a transfer of wealth from bankers to commercial real estate companies, it's a transfer of wealth from the tax payers to the real estate companies.
- fundad 3y agoThe government is in a unique position to take over the properties and convert them to public housing. We have a way to administer it. Between FHA and DOD, they operate more residential units and than any private firm. This ensures housing stays affordable rather than just handing money to billionaires.
- wewtyflakes 3y agoWouldn't the government be taking an ownership stake in the banks at the banks' reduced market cap? How does the taxpayer lose out in this scenario?
- rcme 3y agoWhat if there isn't positive equity left in the banks? What about opportunity cost? The money for the bail out likely needs to be borrowed, what about inflation and anemic economic growth due to interest costs?
- wewtyflakes 3y agoGood point regarding potential negative equity, I hadn't considered that.