because goldman sachs needs a hand!

Congress Giving Millions of Foreclosed Homes To Wall Street Slumlords

Great news, everybody: After deliberately failing to help millions of American families stuck in vulture mortgages, the U.S. government is now giving those foreclosed homes to Wall Street for pennies on the dollar so that Wall Street can then rent the now-vacant foreclosures back to the same people pushed out during the Wall Street-caused housing bubble collapse. Wall Street stands to make an immense profit by becoming, overnight, the “largest improved real-estate owners in the world.” Who says capitalism doesn’t work, with a little help from the government by taking away the property of the working class and giving it to billionaires who pay no taxes? Who says that?

The Street/RealMoney.com reports on this innovative solution to the problem of millions of foreclosed homes currently not providing income for Goldman Sachs:

The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors — vulture funds.

These homes, which are now the property of the U.S. government, the U.S. taxpayer, and U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value. You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.

In the process, these investors will instantaneously become the largest improved real estate owners and landlords in the world. The U.S. taxpayer will get pennies on the dollar for these homes and then be allowed to rent them back at market rates.

[RealMoney.com via Cryptogon]

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About the author

A writer and editor of this website from 2006 to early 2012, Ken Layne is occassionally seen on Twitter and writes small books and is already haunting you from beyond (your) grave.

View all articles by Ken Layne

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85 comments

    1. coron4

      Yes and then all these properties will be managed by vicious mercenary fucks like Transglobe who are buying up all of the low- and mid-rent properties in my city and giving it to the tenants in the ear.

    2. robertsgt40

      Yep. This is part of the recycling process. Not unlike the Great Depression(now being ecclipsed by the Great Depression-Redux), the harvest includes farms, houses, businesses etc. Wealth transfer by design. It helps for Goldman and others to have Congress in their pocket. Greed knows no boundary

  1. Barb

    Ugh, I am thinking about moving to Canada. I'll only be able to wear short shorts 3 weeks out of the year but I won't be so freaking ashamed of my government leaders.

    1. EatsBabyDingos

      Well, since our Dear Leaders don't believe in climate change (and won't help slow it down) chances are good that you will be living in a Mid Atlantic Prince Edward Island pretty soon. Maine will be the new Mexico. I hope Canada builds a wall.

    2. comrad_darkness

      I would be. Talked to Canadians this week on a trip, not a one would pass up trading Harper in for Obama. Harper aka Zombie Bush III.

  2. freakishlywrong

    You know, I've fought like fucking hell to hang on to my house during all this bewlshit. Now I'm glad I did. At least some grasping, greedy, souless asshole won't be able to sell it for sawdust. WHERE is the outrage? For fucks sake.

    1. GOPCrusher

      I just wonder how long it will take for these greedy fucks to start bundling these homes and selling them to each other and complete the destruction the world's economy, except this time it will be with physical assets instead of just paper.

  3. elviouslyqueer

    You and I will not be allowed to participate. The U.S. taxpayer will get pennies on the dollar for these homes and then be allowed to rent them back at market rates.

    Y'know, getting spanked by the Invisible Hand is one thing. Getting donkey-punched by the Invisible Balled-Up Fist Embellished with Brass Knuckles is entirely another.

      1. hagajim

        Is the invisible hand really invisible, when it stretches your rectum the width of a coffee can?

  4. Dumbedup

    At a certain point, your jaw just drops permanently at this stunning bullshit and you say "well, at least booze is still cheap."

        1. Biel_ze_Bubba

          Your kids can work in their factories. I'm guessing the pay will just about cover the rent, and a carton of hobo beans at the company store.

          1. comrad_darkness

            It will cover half the carton of hobo beans, the rest will be oh so kindly given to you on credit.

        2. GOPCrusher

          They'll become "company" homes. Instead of pay, you'll be able to move into one of these houses.

      1. James Michael Curley

        See screed below. The "Resolution Trust" virtually made Countrywide Mortgage in the mid 90's. That worked out well.

  5. Radiotherapy®

    Let's just hope the earthquake and hurricane don't damage all the richy riches job creator's new bargain basement toys.

  6. Callyson

    Can we get Wasilla City Council member Steve Menard to live in one of those houses, and visit several more?

  7. Goonemeritus

    Well I’m sure if I were to fuck up and drive the whole world economy into a dystopian Blade Runner style shit pile my government would dust off my bottom and send me a few trillion.

  8. baconzgood

    This makes me fucking sick. I'm going to buy a pint of booze now.

    (this comment is 100% snark free)

      1. baconzgood

        I'm still at work. Dept. Director Dale and I have a truce in regards to how he treats me vs. how much Non-Client Related Vodka I'm allowed to drink between 9AM-2PM.

          1. baconzgood

            WOW! If'in you start drinkin' heavy at 11:30 it won't seriously hit ya till 2:18. Baconz has it down to a science!

  9. EatsBabyDingos

    IN other news, stock in International Paper is up 42% on news that it is divesting it's modular housing subsidiary, HoboBoxes, Inc., d.b.a, Acme Refrigerator Boxes

  10. Redhead

    This is BRILLIANT. I can't think of one thing in recent history that would give me ANY indication that Wall Street might abuse its power and influence or do anything that could royally fuck this up. Nope, not one single thing.

    At least, fuck this up before the crazy earthquakes destroy all the homes anyway.

  11. MissusBarry

    Everybody loves a bargain! For a peon like me, though, it means clipping coupons for hobo beans. Basically the same thing as getting a shit ton of real estate for pennies on the dollar and charging debilitating rent on it to turn an oh-so-glorious profit. Wait, I feel like there's a flaw in my logic, I just can't put my finger on it.

  12. NorthStarSpanx

    Since Corporations are now people, they should enjoy the American dream of home ownership / slum lordship.

    1. comrad_darkness

      They should pay U.S. tax on their worldwide income then, like the rest of U.S. citizens.

      1. NorthStarSpanx

        I'm surprised the candidates haven't started defending Church citizenship and doing away with that pesky separation with State.

  13. Not_So_Much

    Good to know that my former house will be useful to somebody.

    I hope some low-level GS douchecanoe gets it for his/her 4th get-away weekend home and accidentally burns it to the ground while having barnyard sessy time.

  14. MiniMencken

    So, let's see… The new corporate owners will commence dumping the properties back onto the market in order to make a quick, modest profit, depressing home prices further and wiping out the equity value of the homeowners who managed to hang on to their jerry-built plasterboard tents. Thank God I have my nest egg invested in small French dogs and Soviet memorabilia.

  15. James Michael Curley

    This whole scenario played out after the Savings & Loan Fiasco in the Reagan/Bush presidencies.

    It's our fault if we don't kick these tea bagging, money grubbing, self-agrandizing, dimwits to the ground this November and every November until the entire Republican Party is as memorable as the Know Nothing Party of 1855. "I know nothing."

  16. SayItWithWookies

    A rising tide lifts all boats. It doesn't do too much for the poor bastards buried up to their necks in the beach, however.

  17. BlueStateLibel

    I get the feeling the powers-that-be really do want pitchforks and torches. My God, I cannot think of a worse idea, the worst facist dictators in the world would be ashamed to do this.

    1. SayItWithWookies

      Oh I can think of a worse idea — use eminent domain to confiscate the remaining unforeclosed houses because being owned by Goldman-Sachs would constitute an "improvement." Then with banks cornering the housing market, they'd never be worried about another slump, and big brokerages could reap a fortune trading the houses we once owned but now rent amongst themselves.

    2. zhubajie

      Don't assume these people are smart. They think they can cheat and mistreat their "inferiors" forever. They don't realize that eventually the peasants always revolt, massacre their overlords.

  18. comrad_darkness

    Who said feudalism is dead? We elected Reagan, we accepted the appointment of Bush the Man Child. We totally fucking deserve to be chattel. We aren't any smarter or politically energetic than chattel.

  19. comrad_darkness

    I'm sure someone will give a shit when the government sells the national parks to Godman Sachs, right?

  20. Steverino247

    And if you torch your old house so the bastards can't rent it, they'll just collect the insurance you know they're going to get and when that busted the insurance companies funds, the tax payers will pay the insurance company funds to bail them out. It just gets better and better.

    And no, they have no shame and aren't likely to get any soon.

  21. weejee

    This might be silly, but if gooberment is broke why don't they become the slum lord and rent the houses for a bit of a steady income stream rather than make a gift of the equity to the Wall Street thugs?

    1. zhubajie

      The gov. is not a individual. The various individuals in gov. behind this will probably profit somehow. Maybe they'll get a share of the slum housing themselves!

  22. hagajim

    This is a jawbz bill. Now all those fuckers will have to hire property management firms to make sure you pay your rent and don't make meth in the house (this means you Levi)…and also so you don't punch holes in the wall so they can assfuck you again by taking your "security" deposit (oh – right – they'll take that anyway).

  23. ThundercatHo

    There really needs to be some fucking outrage here. Instead, we're treated to pics of Karcashidumb's fucking zillion dollar wedding.

  24. spinozasgod

    and this is under a dem. president, what the hell is the difference anymore? other than ending every sentence with "praise jesus"…

  25. 1337_1i83r41

    I get a kick of this MoneyGrab the wealthy are doing…before the internet, it was a 'wait 5 years' thing when policies/laws/administrative ruling would fruit a chance for the pigs to eat at the trough.

    Now, even with 'the internet remembers,' these fuckers don't wait six weeks before the policies are laid down to grab. That was in '08…now, they are coming back to suck the marrow out of what's left of our economy.

    What's miserable is that NOBODY says anything about this that isn't talking points from a politician…its just regurgitation.

    O/T — saw a guy still proudly displaying his 'W' and 'McSame/oPalling' sticker on his beat up Saturn, which happened to have the outer door covering ripped off and exposing the skeleton of his driver's door…(its plastic, not metal like my Chevy).

    Looked him dead in the eye, pointed at his door and said, "Fiscal Conservative, eh?"

  26. randcoolcatdaddy

    Hmmm…so the government bought these properties from one group of pricks, bailing them out of their illegal and just downright stupid business decisions so that we could sell them for pennies on the dollar to another group of pricks that have already had a bunch of government handouts.

    I'm not sure, but I think capitalism just disappeared inside its own navel.

  27. PuckStopsHere

    I sure am glad I voted Democrat. For Hope and Change and all. Cause this isn't at all a case of "same as it ever was," no sir.

  28. origamifolder

    With all this BS, why aren't customers, companies, manning up to the immorality of Goldman sacks and stop using their services? Employees aren't going to strike, but at least customers can give them a cold shoulder.

    Oh wait, everyone wants what's best for them, I forgot.

  29. Martintfre

    When the Government props up bankers – that is not capitalism – it is socialism or fascism – capitalism has Larry the Liquidator – Bail outs do not exist in capitalism.

  30. lunaursus

    "The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac……."

    Just a minute…………….if I remember correctly, people bought their homes through banks, which palmed off the loans on Fannie and Freddie. Basically, the banks busted Fannie and Freddie with all these bogus loans. I recall reading somewhere that Fannie and Freddie were also re-selling these loans. My question is,………..WHO ACTUALLY HAS THE ORIGIONAL, WET INK NOTES TO ALL THESE FORECLOSURES?
    At present, many people in foreclosure to banks are realizing the banks probably do not have the origional loan notes, and they are filing demands for the banks doing the foreclosing, to bring that origional note to the foreclosure hearing. At the hearing, the judge has before him that demand order…………so he asks the bank to show the origional note. The banks haven't been able to do that (because they long ago sold those loans, yet were collecting monthly payments off of properties they did not even own and trying to foreclose on them, not to mention the forging of documents the banks have been doing in order to foreclose.). When the banks do not have the origional notes, the judge must and does deny the foreclosure. Copies are not accepted. In NJ alone, it was recently discovered that 90% of the foreclosures there were FRAUDULENT.

    With these notes flying all around and coming up missing………….I would seriously question Fannie and Freddie………….."Where are the origional notes?"

    Be very aware if you are buying property now………..make sure the seller, has the origional documents to prove they own that property…..(especially banks)……do not accept copies as they are not accepted in courts of law. This is becoming a gigantic problem and sadly, most people are not aware because the media will not print this.

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