You often hear from liberals how we need to build more shelters for the homeless accompanied by excuses from conservatives that it takes time and major funding to accomplish the task, blah blah blah. Both sides are misinformed or outright lying.
FACT: For every 1 homeless person in America there are 6 empty houses that were foreclosed on by Wall Street.
Wait, why would they want to keep those houses empty you might ask…? Fair question. Here’s the answer: Because if there’s a shortage of something then the value of that something increases. If everyone has something then it’s not worth as much, right? A taco costs a couple bucks. But if it’s hypothetically the last taco on Earth, you could charge tens of thousands for it. Get it? It’s an acceptable financial concept that if a particular “something” is actually running low on supply then the price would go up. But in the case of housing its intentional. It’s called “artificial scarcity” and it’s bullshit.
The next time you see a homeless person, remember that we have six empty homes for him/her to choose from… if the Big Banks would allow it. They don’t because it pushes up home values, which means buyers need to take out bigger mortgages from the Banks which in turn means more profit.
Even better for the Banks is when there’s an economic downturn, people lose their jobs, and some can no longer afford the payments. Then the house gets foreclosed on and the Bank can find a brand new sucker to take out another $300,000 loan. Why have one homeowner pay when you can keep recycling the same house with multiple homeowners? Same principle applies to the auto industry.
Wall Street was doing this hardcore on a regular basis, pushing it further and further and got so ridiculously out of hand that the housing market collapsed entirely. This was the domino that kicked off the previous Recession. And what did Bush/Obama do to address the problem? Gave trillions to the already-wealthy Bankers who caused the problem while at the same time kicking 9 million middle-class Americans out of their homes.
This all sounds horrible, of course. But guess what? This was all legal (albeit immoral) and supported by both Republicans and Democrats alike. The only Banker ever charged and jailed was Bernie Madoff and that’s because he was pulling this scheme on fellow millionaires instead of the middle-class. It would be hilarious if it wasn’t so devastating to regular people. And if any of this is news to you, then it’s obvious the corporate media didn’t do their job at informing you. Which was also intentional.
And for the record, this entire scam has been repeated since the previous financial crash. Which is why the next one is inevitable. It’s called a bubble-and-burst economy for a reason because that’s exactly what it is. And with every pop the middle-class suffers while the wealthy take advantage and gobble up all the cheap stocks and discounted houses they can. When the market grows back they reap the rewards. They then use some of those gains to bribe politicians to ensure that the laws remain unchanged so the whole process can continue to go on and on and on…
“It’s a big club. And you ain’t in it!” – George Carlin
Here’s Matt Taibbi, one of the only real journalists we still have, explaining what the corporate media never will: