Reply To: ‘The Next Real Estate Boom’

Interesting read. I only had time to scan the whole thing and read about 2/3 of it, but I got the gist.

While I agree with the author that there is more of a demand for homes in walkable neighborhoods with easy access to urban centers, the proposed means of developing these areas concerns me. Currently, the government owns the two largest mortgage lenders, now the author is proposing matching several private dollars to a single federal dollar. Essentially what this means is that you are going to have major corporations, developing areas with federally matched funds, using federally granted mortgages. What you have is another federally created financial/legislation structure that concentrates wealth and power. If the feds determine who gets the loans and then invests in those projects itself, how to do you think that will look? Haliburton, Freddie Mac, Fanny May and Goldman Sachs immediately come to mind… Furthermore, what will really happen is that these areas will become rental communities. You can already see this model all over southern California. You will end up with communities owned and controlled entirely by corporate and government agencies. Individual ownership becomes a thing of the past, along with person liberty and we end up living to work for and rent from the corporations that house us. This is a very real scenario… Another added bonus of having all of your “human resource wealth” in a concentrated area is that it’s easier to monitor. In a dense urban environment, with the right technology, you can keep tabs on your workforce 24/7/365

The author talks about demographics and we’re already beginning to see the transition taking place. Affluent people are moving to urban centers and displacing the poor (who can least afford increased transportation costs) to the suburbs. What you are going to end up with is a nucleus of wealth surrounded by abject poverty. That should be interesting… Now bring in the police and military to “protect” us and put our urban centers into a police state… Again, this is a very real scenario… Scary stuff, if you can see where they are going with this… And that is, where they are going with this…