Private Equity Firms: Drowning in Profit – Economy – Utne Reader

http://www.utne.com/economy/private-equity-firm-zb0z1406zjhar.aspx?newsletter=1&utm_source=Sailthru&utm_medium=email&utm_term=UTR%20eNews&utm_campaign=8.15.14%20eNews#axzz3ASfarWsX

” Perhaps the most controversial development in America’s housing “recovery” is the role played by large private equity firms. In recent years, they have bought up more than 200,000 mostly foreclosed houses nationwide and turned them into rental empires. In the finance and real estate worlds, this development has won praise for helping to raise home values and creating a new financial product known as a “rental-backed security.” Many economists and housing advocates, however, have blasted this new model as a way for Wall Street to capitalize on an economic crisis by essentially pushing families out of their homes, then turning around and renting those houses back to them.

Read more: http://www.utne.com/economy/private-equity-firm-zb0z1406zjhar.aspx#ixzz3ASfgpw5n

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