These People Will Cause The Next Mortgage Bubble-burst

Those who fail to learn from history…

Poligags :: America's Fix Tank

If you love hating on banksters and Wall Street types generally, this post is for you.

If you’re looking to buy, sell or rent a house, you had better read on.

A Wall Street darling called the Blackstone Group dove head-long into the real estate market in 2011, buying up properties in nine major markets where home prices plummeted during the 2008 recession: Atlanta, Chicago, Las Vegas, Phoenix, Northern California, Southern California, Miami, Orlando and Tampa.

Their business model involves purchasing “distressed” properties – foreclosures and short sales – about half of them in cash. Then they warehouse, renovate and rent or flip the properties. They’ve bought so much property, in fact, that in the 12-month period ending in October of last year, prices in those markets surged 22%. Higher interest rates followed.

As Blackstone Group implies, the operation conducts business with other corporate entities or under a number…

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