Way back when, I predicted that this time period would mark the beginning of the end of private homeownership in the United States, like the Great Depression marked the end of the private farm and the emerging of the big farming conglomerates.
Look at what's happening with the GSEs now and recall this post:
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This time period in America will be the transition from "private home ownership" to renters. Just as the Great Depression destroyed the small American farmer, this time will be the destruction of individual home ownership. I predict that the majority of these properties will eventually be bought and owned by large institutions or families and rented. Private land ownership in the US will become more like the UK, where people can lease properties for up to 100 years.
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And then this one:
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If the Fed Reserve gets all these mortgages as collateral, and if the banks that it loaned the money to go bankrupt, then the Fed Reserve becomes the "holder in due course" of the mortgages. If the mortgages go bad, the Federal Reserve can foreclose on them, owning millions of home.
Could the Federal Reserve become the biggest landlord in the country? Its not unthinkable. On a much smaller scale where I live, a regional bank has set up an in house department to rent out the many homes it has foreclosed on, so the Federal Reserve could do something similar, or I'm sure Goldman Sachs or someone would gladly own a majority of the homes in the US and charge a reasonable rental rate, plus, use those homes it owns as collateral to buy the rest of the world.
Ultimately, however this plays out, it will be the shift away from private home ownership in America, just as the Great Depression killed the small farmer.
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