It’s time to put an end to the financialization insanity that’s hurting average people, destroying the American dream, and turning our economy into one big giant casino.
One of the most startling trends to come out of the wreckage of the 2007-2008 financial crisis is the explosion of Wall Street firms buying up and renting out property all across the country.
The housing glut and foreclosure crisis that was, for most Americans, the symbol of the devastation caused by the worst economic downturn of our lifetimes, was, for Wall Street a wonderful business opportunity.
A study from the Center for American Progress estimates that in the five plus years since the crash, “institutional investors [i.e. big banks and hedge funds] have… bought approximately 200,000 single-family homes at bargain prices and converted them into rental homes.”
Amazingly, the New York City-based hedge fund The Blackstone Group has focused so much of its resources on the real estate business that is now the single largest landlord in the entire country.