Monday, June 10, 2013

America the New Pottersville

We have heard about big surges in home sales. Hmmm. But there are all those For Sale signs and people are still upside down . So what is going on. Well. Like the stock market, the one percent is making a play and what they are doing is creating a new Pottersville. Lets go back to the movie It's A Wonderful Life. It was wonderful because George kept the Building and Loan going and they made loans to middle class people nobody else would lend to. In other words they developed a middle class.

But Pottersville owned by Mr. Potter were all renters. Nobody owned. Everyone "kept paying the rent in Potters slums" and that's why the Building and Loan drove Potter crazy because it  cut into his business. Potters renters became Georges buyers. Now. Lets take today. We have an incredibly depressed housing market (sans LA) with prices scraping bottom. Now a lot of middle class people cannot get a loan still. Bad Ficos. Homes upside down. But yet houses are being bought. They are being pot by our modern Potter.

Big companies. Investors from other countries are buying up homes at the clip of three hundred a day. Why? Because they are going to create  a vast rental market for  Americas beaten down middle class. People have to live somewhere and they will rent. And large conglomerates will rent them the  homes until the market moves up and they decide to sell or maybe they will just keep renting. Maybe the new normal is a Potterville where no one can buy but they rent.

A new twist on the American Dream turned upside down. Remember in the movie when George gets his wish and the world has turned into Pottersville? At least he could wake up and return to the old world before Potter. We are not so lucky

Books by William Hazelgrove