The big banks are holding 3.67 million homes off the market, according to the new Bloomberg report. What’ve I been tellin’ ya?
According to Bloomberg, the 3.67 million homes “clogging up the market” are more than the total number of new and existing homes combined that are available for sale in the entire United States. The total value of those homes is $382 billion.
The result of this scam is a massive increase in housing prices, both sale and rental prices. The big banks and their rich shareholders are making out like bandits, because they are bandits.
The big banks have conspired to keep these homes off the market in order to drive up prices. This is called “a conspiracy in restraint of trade,” and it is a violation of several different US laws.
This is also a massive income redistribution scam as citizens are forced to spend tens of thousands of dollars more per home, or pay thousands more in yearly rent, than would otherwise be the case. The big winners of this scam are the rich shareholders of the banks, along with their CEOs.
Don’t hold your breath for justice. The big banks own both major political parties, they have judges in their back pocket, and they basically own the federal government, including the US Department of Justice.
You can see from the chart below that the number of people taking out mortgage applications reached a peak in 2005. Currently, applications are at a 21 year low. That means demand for houses isn’t pushing up the value of homes to create the current housing bubble.
Rather, a more than 50 percent reduction of supply has caused the bubble. The only way for the banks to keep such a huge amount of houses off the market is for them to illegal conspire together in violation of the law.
For more on this story see The Shadow Housing Inventory–Bloomberg News