The largest public to private sector transfer of wealth is about to begin

I imagine the Teaparty Republicans will be thrilled about this news — Capitalism is alive and well and lighting its cigars with $100 bills! Not only will Wall Street be taking our foreclosed homes for pennies on the dollar (guaranteeing huge profits), but their taxes are still unbelievably low! From Wonkette:

Great news, everybody… Wall Street stands to make an immense profit by becoming, overnight, the “largest improved real-estate owners in the world.” From Real Money

The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors — vulture funds.

These homes, which are now the property of the U.S. government, the U.S. taxpayer, and U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value. You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.

In the process, these investors will instantaneously become the largest improved real estate owners and landlords in the world. The U.S. taxpayer will get pennies on the dollar for these homes and then be allowed to rent them back at market rates.

But read this:

[...] the U.S. Treasury Department issued a Request for Information (RFI) concerning the disposition of the inventory of foreclosed homes owned by the federal government.

[...] the RFI is a way for the members of Congress to find out if they can get away with bulk-selling these homes to private companies without incurring the wrath of their constituents, taxpayers and former owners of the properties. Assuming taxpayers don’t push back, the next step will be to issue a Request for Proposals (RFP). The RFP will be the bid and plan for these homes by investors.

(RealMoney.com via Wonkette)