Matt Taibbi: Another Hidden Bailout: Helping Wall Street Collect Your RentQuicklink submitted by Rob Kall Permalink
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|Here's yet another form of hidden bailout the federal government doles out to our big banks, without the public having much of a clue. This is from the WSJ this morning: Some of the biggest names on Wall Street are lining up to become landlords to cash-strapped Americans by bidding on pools of foreclosed properties being sold by Fannie Mae... While the current approach of selling homes one-by-one has its own high costs and is sometimes inefficient, selling properties in bulk to large investors could require Fannie Mae to sell at a big discount, leading to larger initial costs. In con artistry parlance, they call this the 'reload.' That's when you hit the same mark twice -- typically with a second scam designed to 'fix' the damage caused by the first scam. Someone robs your house, then comes by the next day and sells you a fancy alarm system, that's the reload.|
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