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I don't see the crucial similarity to the housing bubble: renting out to people who cannot pay. Actually, their policy seems to be the exact opposite, strict co
by blfr 11y ago
I don't see the crucial similarity to the housing bubble: renting out to people who cannot pay. Actually, their policy seems to be the exact opposite, strict collections.
- rwmj 11y agoMortgage securitization didn't start out with subprimes and "NINJA" loans. It just got that way as demand for the securitized products got out of hand and the banks had to produce more and more of the product from somewhere.
- hkmurakami 11y agoThe article states that they are assuming a 95% occupancy rate at all times. What happens when they undershoot this number and aren't able to make the yield payments? Isn't that analogous to "renting out to people who cannot pay"?
- sarreph 11y agoSuch a crucial similarity will only develop if this system continues to develop with ever-hungrier competition (e.g. "Blackstone's competitors announced that they, too, would develop similar securities") and thus snowballs from a lack of regulatory control on applicant approval.
- justincormack 11y agoThere were strict collections on subprime mortgages too, according to the documentation.
- davidgerard 11y agoThe guaranteed 5% rent increases will lead to interesting times.