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Spanish Tenants Wake Up To The Horror Of A Wall Street Landlord
Having grown weary of reality in America (after becoming the biggest landlord in the land of the free to borrow cheaply), Wall Street moved into the distressed property purchase ponzi in Spain (as we noted here) and, surprise, the Spanish are not happy with their new slumlords. After Madrid's local government sold 5,000 rent-controlled apartments to Goldman and Blackstone, having told tenants their rental conditions would remain the same, dozens of people have received demands for higher rent, been told their rents will increase dramatically, been threatened with eviction or moved out to escape the insecurity as old contracts expire.
Last year Madrid’s city and regional governments sold almost 5,000 rent-controlled flats to private equity investors including Goldman Sachs and Blackstone. At the time, the tenants were told their rental conditions would remain the same.
But as old contracts expire, dozens of people have received demands for higher rent, been told their rents will increase dramatically, been threatened with eviction or moved out to escape the insecurity. Thousands of Spain’s poor now depend for their homes on the generosity of private equity.
...
In the buildings sold to the funds, Reuters has spoken to more than 40 households who face similar difficulties. They include some of Madrid’s most vulnerable people: an unemployed single mother of five with a severely disabled daughter, for example, and an HIV patient with one lung. Both faced evictions that were temporarily halted at the last minute.
There is no suggestion the buyers have acted illegally. Having bought around 15 percent of Madrid’s publicly held social housing, the new owners are simply exercising their right to charge commercial rents once reduced rents that tenants have paid expire.
However, Socialist councillors in Madrid have launched lawsuits directed at the state bodies that sold the rent-controlled homes, and tenants meet weekly to organize street protests. Evictions ordered and postponed by the new owners are an increasingly common sight in Spain’s media.
For the private equity firms that bought the flats, the deal was good business. For tenants, less so.
The public-sector real estate workout is creating winners and losers. Spain needs new investment to put a floor under its property market - a necessary condition for a broader recovery - and at the same time its social safety net needs funds. Economist Miguel Hernandez said foreign investors play an important role by providing cash to public institutions.
“These funds may appear to be acting like vultures, but they are also helping the system, because the administrations had very few options to get the cash they needed,” said Hernandez, professor at IE Business School.
...
Six sources involved in the bidding process told Reuters that bidders knew the straitened circumstances of the tenants. The funds that entered final bidding – nine in all – were given detailed information. The sale terms, seen by Reuters, show the regional government stressed that the new owners must honor all the tenants’ rights and obligations.
Goldman went for the Madrid homes after a successful pair of similar deals in Germany, a person familiar with the matter said. Goldman looked at the profiles of the tenants and considered whether the properties were “under-managed from a yield perspective” and whether new ownership could “improve rents.”
Here is Mike Krieger explaining how it works...
See how this game works? Financial oligarchs always get access to free money from Central Banks, as well as discounts during privatizations, and then turn around and demand the plebs pay the market rate.
Unemployed hairdresser and mother-of-three Yasmin Rubiano lives in a flat now owned by Goldman and Azora. Rubiano said she stopped getting a printed rent bill once her reduced rent of 50 euros per month ended in December, but got no word from the new owners.
In January she started to receive monthly text messages from her bank, which she showed a reporter, advising that it had received a demand for 498.18 euros. She has been paying 100 euros a month to show goodwill, but cannot pay more. In March, Rubiano said, she received a letter from Encasa Cibeles demanding full payment or threatening legal action.
On Aug. 6, the 20 tenants in Arriba’s block signed new contracts with Fidere, some of them seen by Reuters, which stipulate a rise of more than 40 percent in rent over three years. Blackstone referred inquiries to Fidere.
Some local politicians say IVIMA acted illegally by selling the flats cheap. IVIMA Director Ana Gomendio declined to comment.
Wolves will always eat sheep, and until the sheep decide enough is enough, the wolves will continue to feast.
* * *
The irony, of course, is that Spain has been boasting about its housing recovery because Blackstone and Goldman have been buying cheap real estate hand over first. The problem is that now they are sending out the eviction notices. Let's see how this works out for Rajoy...
With youth unemployment at record highs, corruption allegations against the Prime Minister, and regions seeking secession, it appears Goldman and Blackstone may be just the tinder to start more social unrest as reality starts to bite that a recovery never happened.
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Threatening eviction notices if higher rent is not paid is doing God's work, right?
Real estate was done in 2008, only extended a brief period by the Fed's ZIRP.
Walla Streetah beeen a berry berry goodah to me!
But you're dealing with Spanish courts.
They should be good for two or three generations.
Siesta Siesta,
Everybody they Siesta Siesta,
They all take a Resta a Resta
When day take a Siesta Siesta
Now sigah alongah wid a me-a
60 euro a month for rent is ridiculous, I kind of agree with GS on this one.
"Socialism's a bitch once you run out of other people's money."
Margaret "Crazy Maggie" Thatcher
They do this everywhere they go.
Boot out the sheep to be replaced by "higher class" payers...
They are doing this in downtown los angeles as well... But on the flip side, the place has been cleaned up quite a bit... if you can believe such a thing...
Even a "cleaned up" LA is still a shit-hole
Listen knucks,
You sound like a world traveler. Is there anyplace where you have not been? Please tell.
The weather is nice in Spain, NO? Cant they live in the streets???
Give them like a big umbrella shaped like a roof, then they cant complain they dont have a roof over their heads.
Frankly I think they should squat on the lawns of the politicians. Take a piss in their water fountains and take a dump in the flower beds.
0b1knob
"The trouble with capitalism is that eventually you run out of other people's money."
That is exactly what happened in 2008. You must have been drinking lots of Koll-Aid.
escrava will you PLEASE fuck off?
The trouble with capitalism is eventually, the government runs out of bail out money. Fixed
Please learn what free-market capitalism is before you make this kind of stupid assertion.
Bailouts are a GOVERNMENT action (subsidies), therefore they are classified under a socialist agenda.
The capitalist thing to do would have been to let the businesses fail, be liquidated and run under capable management.
Edit: In fact, the excuse used for the bailouts was "well we need to prop up the banks because if they fail, people will starve! The economy will stop working and be swallowed by a black hole. How will we survive?!"
IE: the excuse that every socialist in history has used ever. And yes, I know capitalism doesn't do ethics well, but neither does socialism. Case in point: the massive dildo of government fuckery being thrust into every responsible saver at the moment.
Broseph, not everything Government does is Socialist by virtue of the Government having done it. In fact, your statement should read, "Bailouts are a GOVERNMENT action (subsidies), therefore they are classified under a socialist Fascist agenda."
The merger of corporate and State power, and the privatization of the public purse is Fascist, not Socialist. When people tell you it is Socialist, you need to look very closely at their motives. Almost every time, you will see that those spreading that tale in fact profit from the public purse, and they're using the fact that Americans hate "Socialism" without being able to define it, to mask their true agenda and how they are profiting from it. For some weird-ass reason, Americans respond in a Pavlovian reflexive manner with negativity to the word "Socialist," but we don't seem to mind Fascism. Probably because we hate hippies and uppity intellectuals who call high-school football coaches and local Sheriffs "Fascists," which trivializes the word (though they are most likely indeed Fascists), so we don't understand what Fascism is and why it always, but always, destroys every society it infests.
No "Socialist" would ever bail out private industry to immunize private capitalists from losses and the consequences of their own actions. Socialists would do a lot of thiings none of us would want, but they wouldn't do that. That course of action is textbook Fascism.
Thank you for posting that. You are so right about the Pavlovian response by Americans to the word socialism. And most have no clue what it even means...
One, I am not an American, if that was aimed at my post. Two, I am versed in Marx, social systems, and many other concepts.
Probably worth mentioning, is that the US middle class is currently being squeezed by TWO forces, both of which are in place by government. The first is the subsidization of the banking system and the costs of maintaining a grossly inflated military, which is a right-wing machination. The second is a system of socialist design. That is where you find your spiralling costs of benefits, medicare, medicaid etc.
So yeah. Let's simultaneously raise the taxes to pay for unfunded liabilities and destroy savings via potentially inflationary policies.
swmnguy
Great post.
We need more like what you just wrote. Lots more, I am afraid to say.
Thanks.
The big difference between liberty-loving free-market capitalists and socialists is that the former are willing to admit they're capitalists, while the latter will deny they're socialists until their last breath. Why, Escrava? Why is it impossible to find anybody willing to admit they're a socialist?
Not My Real Name
Because the system of propaganda is purposely built to confuse.
Liberals are NOT socialists. They can’t, Period! Liberals are linked to welfare state.
Welfare State: Concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. Top-Down management and Crony Capitalism.
Socialist Nations: Bottom-Up management. Workers through cooperatives own major industries. Larger businesses should not, in general, be owned by the state in accordance to the failed Soviet model, but should rather be governed by a corporate board elected democratically by the workers (which would in turn choose executives) and involve elections for upper management as well at the presidential and vice-presidential level. Socialist primary aim is to end the exploitation of men by men. Public services may be commonly or state owned, such as healthcare and education. Private ownership of the means of production should extend only to small and midsized businesses.
Fascism: Heavily on patriotism and national identity. It exalts nation and race above the individual and stands for severe economic and social regimentation, and forcible suppression of opposition.
So what is your point? Yes, I'm aware that in this case money is flowing to the wealthiest constituents which resembles a fascist, or plutocratic system. Regardless of whether socialist, or facist, assaulting capitalism fails wholly since you are now establishing that the system is no longer capitalist?
Despite that you do not shoot the messenger. Capitalism is the only system which produces benefits across the entire swathe of society. Socialism, despite its relatively benign origins has a tendency to grow in scale and scope. This growth of the state places a drag on genuine productivity, which in turn can and will impact living standards. Fascism has the same tendency, although it tends to skew the wealth distribution to the influential members of society.
Both systems would will eventually fail. Capitalism is the only system which improves living standards across the board by freeing up resources and placing them in productive assets that benefit every member of society. When you place your hands in government, you place your hands in bureaucracy. Bureaucracy is not meritocratic and rewards the most cunning, wealthy, or ruthless members of society.
The best argument that could be made is that a capitalist system has a tendency to mature into a fascist system in the latter stages. The worst part is, people have somehow come to confuse true capitalism with the sham that we see now. Thus, whereas they should be driving for a system that rewards hard work and ingenuity, they will end up delivering more sovereignty into the hands of the people who have been destroying it, or worse, possibly an even more ruthless regime borne out of civil discord. This is documented in the posts above.
Edit: And let's make this clear- I have absolutely nothing against socialists. Some of the kindest and most giving people I know are socialist. However, "the road to hell is paved with good intentions" as they say. Deliver power into the hands of the people who can tax, and find a severe drag on economic growth for a long time. Don't believe me? Look at China and Russia under communism vs. now. That's all I'm pointing out.
And let's not talk in absolutes. Some kind of a state is necessary for ethical considerations, not everything can be reduced to a pie chart, or calculation. This is also well documented in human nature. However, the current size of governments are insane. As an honest tax-paying citizen, why should I continue to pay my taxes while thieves, charlatans and non-productive individuals destroy my earning potential? Consider that.
0% interest for banksters is ridiculous, I kind of agree with Spaniards on this one.
Bunga Bunga 0% interest for banksters is ridiculous, I kind of agree with Spaniards on this one.
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Okay, let's say the bankers were paying 10% interest. Then what would be the fair price?
Both parties are being subsidized but only one party is guilty?
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Edit
And by the way. Who is subsidizing both parties? Government
You (and the Spaniards) really don’t understand how the financial fraud works.
Larry from Pittsburgh: Repudiation is not the solution as it would destroy millions of innocent people through their investments, pension plans, 401-k’s etc. and it is unnecessary. Instead I would recommend a three prong attack:
1) The U.S. should issue debt free money to repay the national debt as it becomes due. If a bank created the money to buy the treasury bonds (which is very common) the money would be destroyed upon repayment but the money in circulation already would stay there.
2) Debt free money should be spent into circulation by states rebuilding their infrastructure.
3) 0% interest loans must be made available. I would start with the biggest private sector credit market in the country – mortgages. The U.S. is already guaranteeing around 97% of mortgages in the U.S. (http://georgewashington2.blogspot.com/2011/03/97-of-all-us-mortgages-are-backed-by.html) so why shouldn’t they own them?
The government could issue (debt free) the approximately $12 trillion required to buy all of the mortgages and then roll them over to 0% loans (mortgage holder must qualify).
http://realcurrencies.wordpress.com/2012/03/01/debt-repudiation-or-an-in...
And you have very little understanding of markets.
Escrava Isaura 1) The U.S. should issue debt free money to repay the national debt as it becomes due. If a bank created the money to buy the treasury bonds (which is very common) the money would be destroyed upon repayment but the money in circulation already would stay there.
No one would lend to the US killing the bond market. And as most US bonds are held by US citizens, this would kill them.
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2) Debt free money should be spent into circulation by states rebuilding their infrastructure.
Money is not only a medium of exchange, but a measure of production. States and governments do not produce. They only provide the illusion of production by moving money around and charging for it.
----
3) 0% interest loans must be made available. I would start with the biggest private sector credit market in the country – mortgages. The U.S. is already guaranteeing around 97% of mortgages in the U.S. (http://georgewashington2.blogspot.com/2011/03/97-of-all-us-mortgages-are-backed-by.html) so why shouldn’t they own them?
Here comes real estate bubble 3.0. Have you not learned already what artificially low interest rates do?
I think you can't be helped. You need to go to non progressive econ 101. Beginning of the class.
Dude, I hate defending her but, you are way off here:
1) no one would lend us... Is issued money, as in coming from the treasury. The persons that already hold bond will receive their full face value at maturity just like if the .gov would have borrowed additional funds to pay them, except without incurring additional future debt.
2) Money is not only a measure.... Agreed, and as you said, governments produce nothing so their speding corrupts the value of the currency. Yet, what corrupts it more, spending a given number of currency units or spemding that number of currency units having first borrowed them at interest?
3) Have you learned nothing... Zero interest rates for houses would increase thei price, yes, since the monthy paymetns would be lower for a given home value true, yet that has zero relation as to the ability to pay for such property. If a person applies for and gets a $200K loan from Freddy or Fannie and is then unable to pay, they will loose the home, weather there was any interest involed or not. ZiRP for banks creates bubbles in the stawk market that have no collateral to back them. ZiRP in mortgages would cause inflated prices, yes, but last time the US tax payers had to bail out the banks and make them whole without gaining anything. Defaulting on a mortgage from the .gov would make that asset .gov's property, not the banks.
goldsaver
I hate defending her...
Gee, thanks!
My Saturday is looking up.
sessinpo
1) Did you read what Larry from Pittsburgh written? “the money in circulation would stay there… it would 'NOT' destroy millions of people through their investments, pension plans, 401-k’s etc.”
2) You wrote: Money is not only a medium of exchange, but a measure of production. So that is one more reason to remove the serfdom (interest, rent, and most taxes) and have it being spent on the real economy. So the banks would be much smaller and not very profitable. Most would own their property so rent would be almost nonexistent. And government would be much smaller.
3) There wouldn’t be a housing bubble because income would dictate the size of the loan.
Consequences bitches!*
"But you're dealing with Spanish courts.
They should be good for two or three generations."
I sure as hell hope so. USA out of Europe.
"Goldman Go Home"
it'll be great when the spainards burn them down and GS and BX trys to collect on the insurance
Goldman Sachs, an investment bank that at the last minute (2008) became a commercial bank thus access to the Fed window (cash) as well as government (welfare) support now acting as landlord by scamming the working-class/poor Spaniards?
Something’s wrong with this article.
Welcome to the new world order. Welfare and protectionism is for the 0.1% only, the rest needs to "enjoy" capitalist liberalism at maximum.
Bunga Bunga
It’s very challenging to overcome misinformation and indoctrination.
Michael Hudson: What people expected and what President Obama had promised when he came in, when he was running for election, was he was going to write down household debt, write down mortgage debt to the actual market price and write down mortgage debt to the price that could be paid.
But as soon as he came in, he appointed Tim Geithner and all of the Wall Street nominees to run the things, and they had no intention at all of writing down debt. So they’ve kept the debts in place. Ten million families have indeed lost their homes just as was forecast in 2008. And Wall Street’s made a killing, the hedge funds have made a killing, by coming in and buying homes for all-cash deals, just buying up all the foreclosed homes and all the homes that are being sold under distress by homeowners that have fallen behind.
The Fed has not–had promised to help the homeowners, but that hasn’t really happened. The help for the homeowners never materialized, as there have been whole books written about that, such as Bailout.
http://michael-hudson.com/2014/05/qe-reduction-in-time-for-next-speculative-kickoff/
Hell, the fix was in before Obama won the 2008 election. Remember those crazy days of October 2008? Both Sens. McCain and Obama promised, if elected, to appoint as Secretary of the Treasury one Timothy F. Geithner.
That's when I decided to vote for my Dad for President. And so I did. He'd have made a horse-shit President, but he'd have been better than either of those choices. Except he'd have been assassinated before the end of January 2009.
Escrava Isaura Goldman Sachs, an investment bank that at the last minute (2008) became a commercial bank thus access to the Fed window (cash) as well as government (welfare) support now acting as landlord by scamming the working-class/poor Spaniards?
Something’s wrong with this article.
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Nothing wrong with the article except the way you portray it. GS couldn't be a commercial bank until the Government permitted it with the repeal of Glass Steagall act. Nothing last minute about it.
If anything, it simply shows what I have been saying time and time again. The problem is Government.
Who subsidized and created these crazy low rents in Spain? Government
Who sold the rentals to banks? Government
Who threw the renters overboard? Government
Who allows banks to do this and that? Government
Getting the point yet? Government
sessinpo
The myth that the US is a Republic.
It takes two to tango!
US government works for the (financial and multinationals) corporations.
“In the work that’s essentially the gold standard in the field, it’s concluded that for roughly 70% of the population – the lower 70% on the wealth/income scale – they have no influence on policy whatsoever. They’re effectively disenfranchised. As you move up the wealth/income ladder, you get a little bit more influence on policy. When you get to the top, which is maybe a tenth of one percent, people essentially get what they want, i.e. they determine the policy. So the proper term for that is not democracy; it’s plutocracy.” – Noam Chomsky
http://www.salon.com/2013/08/17/chomsky_the_u_s_behaves_nothing_like_a_democracy/
"The myth that the US is a Republic."
The myth is that the U.S. is a democracy. The U.S. was created as a constitutional republic.
Regardless what people in government have been doing to try to pervert it, on paper it is still a constitutional republic.
moneybots
Would you care to describe to us what you mean by ‘constitutional republic’?
A collection of separate individual states that follow a common federal constitution that is followed second behind state rights-government.
I believe both of them are doing yaweh's work. Two of the biggest leeches on the world, connect the dots.
my co-worker's sister makes $72 /hr on the computer . She has been unemployed for eight months but last month her check was $12806 just working on the computer for a few hours. check this... www.yelptrade.com
posted this for ya'll early this morn...
just sayin...
peace.
The Spanish need to make Goldman pay by going on strike and not paying. GS is just probably hoping they'll burn the place down (Jewish Lightning) for the money. Spain needs moar seccessions to stop this shit.
If the Spaniards had any machismo (not any more, all the tough guys came across the Rio Grande just last month) they'd tell the bankers bought the properties that trying to raise rents is a breach of contract, expropriate the properties and tell the bankers to fuck off, no, you're not getting your money back
But oh no....
?? Spain does not have the Rio Grande as a border.
Tell Goldman to get the unauthorized, illegal, rent increase from their Buddies at the Fed.
They never put into practice what the Commanche and Apache taught them about eviction.
Plains Injuns.
In the Netherlands, Goldman tried to do the same, to Vestia, a large housing cooperation. Vestia drowned in derivatives sold by Goldman & co, after they went bankrupt, Vestia put the rented houses into a foundation, separated from the rest and Goldman couldn't touch it anymore. So Goldman got paper for paper, instead of 10.000 houses for rent.
Goddamn cocksuckers from Goldman.
Hang those basterds, i agree.
Anonymous kids, instead of targeting other social networks like the church of scientology could perhaps focus their effort on real threats - the Fed and GS.
Anonymous was an op to provide cover & flush out the able. Just like when you put snails in the fish tank to keep it clean, and they take over.
Shylock Central... "No rules. Just right!"
The usury business is in full bloom and they don't take "no" for an answer!
"What are you prepared to do"?!!! Jimmy Malone Untouchables
The Squid's worst nightmare in Spain is to be turned into Calimari
Madrid's local government sold 5,000 rent-controlled apartments to Goldman and Blackstone
Now where did all this lovely money come from to enble the purchase that had to find a place to put it somewhere.
Think FED, think fiat dollarsd. think QE to the tune of 80 billion dollars a month?
It has to to somewhere.
Now imagine you had the global reserve currency, can print whatever you want so in fact you can buy everything and that is what is happening.
It does seem like the dollar global reserve currency is being abused.
lol.
High finance does not necessarily care about returns. They care about outcomes. It is quite obvious they want riots. Now you have to ask yourself, why?
Hey Uncle I am surprised the Euros didnt put in capital controls to keep all this freshly printed money from coming into europe and buying up tangible assets with toilet paper. I remember reading the the South Americans, ie Brazil had done just that when the fed went on the printing spree.
Make Blankfein a Spanish Prisoner.
Global Gaza financed by fiat. Time to reopen the camps and fire up the ovens.
Arent you proud to be a fucking greedy american?!?! Cause I'm sure not! My European mother warned me this year , next time you come home son wear a Canadian T shirt and use your born passport.
Buy a one-way ticket while you're at it.
Hey tarabel FU!
Don't forget that as a Canadian you would be a target of Muslim terrorists thanks to Harper's declaring war on ISIS.
You would be better off wearing a big American flag, they are more scared of America than they are of Canada.
Ps Viva La Revolucion!
Two quick observations:
Individual horror stories aside this sounds like a typical socialist project where the government was underpricing the rents for political reasons and was losing money. They then privatised it to get a quick infusion of cash and be able to tax the property. The new landlords are prepared to take the heat to raise rents.
The renters are losing a sweet deal, but it was a deal at the expense of taxpayers.
FWIW--I believe you're on the money with both observations.
Socialism works---until it doesn't.
"but it was a deal at the expense of taxpayers."
What about American taxpayers who have to pick up Goldman's tab at the Fed ? $20 billion in 2009 (subsequently paid out as bonuses) and the Fed has now conjured up $4 trillion plus for our children and grandchildren to pay.
Agree with you, but was commenting on this particular story.
Fifth If they can raise rents then the apartments aren't rent controlled.
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It's amazing how many of you missed the point that the contracts expired. That could very well happen in the US in rent controlled areas.
All government has to do is let a rent controlled area expire and boom, no more rent control.
I guess you really can get blood from a stone.
“Everybody has a plan until they get punched in the face.”-Mike Tyson
There is a long chain of screw ups of which this is just the last link.
1) Socialist government passes laws to "help" tenants
2) Result, costs go up, landlords go bankrupt, no more rentals get built, housing gets taken off the market
3) Socialist government "solves" housing shortage by building public housiing, using borrowed money and taxpayer subsidies
4) Socialist government runs out of other peoples' money, gets clever idea to sell housing.
5) Buyer notices apartments are rented for a small fraction of their value, in fact not enough rent comes in to pay expenses (taxes, insurance, repairs, mortgage interest etc).
6) Buyer tries to raise rents to market price, legally, after old leases expire
7) Shit storm erupts over "greedy" landlords not wanting to give away 1000 Euro apartments for 50 Euro.
You may think Goldman should subsidize the tenants, but remember that doing so already broke the Spanish government and they can afford it better than any private company.
armageddon addahere
Gosh! You’re totally intoxicated by the indoctrinating Kool-Aid.
I can only imagine your agitation and anger when you stop drinking it.
I gave up Koolaid a long time ago. Having been a landlord since the 1970s I can assure you what I posted is closer to the truth than anything you can make up.
armageddon addahere
So, you should get this pretty quickly.
“Real estate is just another vehicle on this financial Ponzi scheme of ours” .
How do you earn money?
Rent (usury)
How do banks earn money?
Interest (usury)
How do governments earn money?
Tax (usury)
Now, let me give you an example about the problem with Usury (Not that you haven’t realized it by now):
Margrit Kennedy on Usury [serfdom]
If Joseph the father of Jesus would have invested one penny at his birth at 5% interest, and Jesus would have returned to the same bank in 1990 - at the time of the German unification - he would have been able to buy, with the money accrued in the meantime, 134 billion balls of gold of the weight of the earth, based on the official price of gold at this time.
This shows mathematically that the continual payment of interest and compound interest over a longer period of time is practically impossible. And explains why we have economic and social breakdowns.
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CCAQFjAA&url=http%3A%2F%2Fwww.converge.org.nz%2Fevcnz%2Fresources%2Fmoney.pdf&ei=YEUlVJKWN9CUsQS8qoG4Cw&usg=AFQjCNE5OvSWx2rSJhlyngc1nFrJFgV_1w&sig2=JFevCL8UtTx3uDHNC-ScJg&bvm=bv.76247554,d.cWc
By the way: US is NOT, and it has NEVER been a socialist society.
I won't bother to copy most of your post as it is incorrect. I'll just correct you.
Usury is not simply charging interest. Usury is charging excessive interest. There is nothing wrong with charging interest. I am not going to loan someone money without getting something in return and you shouldn't either. Otherwise you'd go broke trying to help someone by lending.
Secondly, governments don't use usury in the sense you say. Governments use slavery and what they call "legal" enforcement.
You example is complete bunk (BS). Your example is of compound interest, not usury.
Listen to you: Excessive
What’s excessive? 3% rent increase. 3% interest rate. Or, is it 3% tax increase?
sessinpo
The Problem is PRIVATE-MONEY and INTEREST!
That’s why you see debt (serfdom), inflation, hyperinflation, deflation, and depression.
Let me give you the best explanation that I found.
The Difference between Debt-Free Money and Interest-Free Credit
Nature of debt money [dollar], specifically that created by hypothecation:
The hypothecation mechanism takes the borrower’s credit and assigns it to the banker. The banker then creates bank money, even though the debtor provided his asset or future labor. Banker’s risk is also low, as the debtor’s assets can be foreclosed.
This banker money splits into two parts at birth: A debt instrument is created i.e. loan documents, mortgage or some sort of debt claim. Simultaneously, the banker creates ‘his new’ money as a output of the loan. This money is called banker.
However, the instrument may travel a path different [where this fraud/loot gets in high gear]… The two entities may be disallowed from returning to each other, and hence they cannot cancel out. This is a clear danger…These two paths, and disallowing is not comprehended well by economists.
In the case of Germany circa Versailles treaty, a three way triangular flow was created. The allies had to pay back dollar denominated debts to America for war material borrowed. Germany in turn was put on the debt hook to pay dollars, gold, pounds or Francs to the Allies.
The U.S. didn’t allow much in the way of German goods importation, so Germany could not acquire dollars in trade to pay allies, who wanted dollars to pay their debts. Ultimately, Germany borrowed (more debt) from wall street to pay into the triangular flow. This triangular flow led to the hyperinflation, and ultimately a populist (Hitler) being elected.
Germany issued bonds to create credit money in Wall Street. Credit dollars found their way from Germany and ultimately to the U.S. treasury, as if they were going from one U.S. pocket to the other. However, Germany, England and France all had dollar debts that were outside of their legal system. They had difficulty acquiring the dollars to satisfy the debt instrument outside their country. This ultimately led to WW2.
It should be a cardinal rule in economics; never let your debts point outside of your legal system. How many need to die before this rule is learned? Debt money, even without usury is dangerous if not kept under control.
Lately, the U.S. has used debt instruments to create empire. A foreign country. lets say Bolivia, is hooked on dollar loans. The dollar denominated debt instruments are attached to the whole country and population. The BM [Bank Money] soon leaves the economy as much of it becomes bribe money for leaders, and the rest goes overseas to buy the power plant, or road construction machinery, etc.
The rosy economic picture of the World Bank projections never materializes, hence no dollars are available in local economy to cancel the debt instruments. Bolivia does not have enough dollars and the Bolivian currency comes under pressure.
At that time bear raiders [speculators] borrow BM money into existence and attack, causing the local money to collapse. Predators [US banks] can then enter with dollars and buy up the country, leading to Oligarchy. Or, dollar zone countries (U.S. with its military) may go in and demand their pound of flesh, i.e. resources such as oil extraction, in exchange for the debt relief.
So, usury turbocharges the debt problem, as there is not enough money to pay off the instruments. But, also there is a big problem of path, where the BM [Bank Money] is not available… it has disappeared. -- REN, at Real Currencies.com
http://realcurrencies.wordpress.com/2013/10/11/the-difference-between-debt-free-money-and-interest-free-credit/#comment-15232
Listen to you trying to change the subject to hypothication because you can't win your argument.
I took your points one at a time and now you add new stuff because you are losing your argument.
You should read your own crap."It should be a cardinal rule in economics; never let your debts point outside of your legal system."
It was within the legal system that GS took control of those rental properties. It was also within the legal system that they can raise rents. And who made that legal system? Governent
You are so ignorant and full of crap, I am done with you. There is a reason you get so many down arrows. I hope that most other ZHs simply ignore you as I will and you will fade away into the nothing that you are. Until you have educated yourself, you are a waste of time here. If I continue you to rip your a hole apart any further, it will be a black hole.
sessinpo
The ‘real’ cardinal rule is:
“The only function of economic forecasting is to make astrology look respectable” --- John Kenneth Galbraith
If you think rent is free, unearned money go buy a few houses and rent them out to the people who need them most, and see what happens.
Money is free. There is no debt and there is no ownership unless you hold it in your hands or you live in or on it.
Good luck, global elite trying to maintain all the "assets" you think you're holding in your portfolios.
The elite benefited from trillions of free cash and is buying up the world.
Unless the elite is able to enforce their "ownership" of these assets, their claims and titles are completely worthless.
Ownership is transitory. Remember that. Money is an illusion and it does grow on certain trees which can only be harvested by certain people. When they fuck up and get too greedy in their manipulation, the tide will quickly turn against them and question all which they claim they own. It happened before and it will happen again.
Goldman received free money to buy the apartments, so they can carry the current condition. Is Goldman doing God's work in this situation? I thought doing God's work is the Goldman mantra.
Capitalism is an exclusive system and fails to include the entirety of society. The oligarchs plunder with no social reponsibility.
You couldnt have said it any better... Subsized is one of the worst things going on nowadays.. the word makes me cringe... along with Union....
Let's see...
The one lady was paying about 65 dollars a month to rent an apartment in the capital of Spain. Rents slated to go up 40% over three years' time gets her to about 90 dollars a month by 2017.
Okay, so the Spanish authorities build these apartments and essentially allow people to stay in them for free. Until the state is so bankrupt that it can no longer justify doing so unless other things are cut, such as salaries to bureaucrats.
Can't have that, so the apartment complex is privatized, with the prioviso that the new owner honor the existing rental contracts-- presumably one year leases-- which they have apparently done so. Now that the leases are up, the new owners are free to bring rates up to a market level.
The Spanish authorities knew this was going to happen and threw the helpless tenants overboard regardless. They have saved their salaries, jettisoned their unaffordable welfare state clientele, and left the foaming pavlovians of the world to react in fury at the private businesses who bailed out the corrupt, cynical Spanish authorities-- who get to escape the blame for this matter, all of which rests upon their shoulders. 100%.
Bingo
Like i said these people need to squat on the lawns of the politicians in tents, piss in the water fountains and shit in the flower beds of said politicians
Like i said these people need to squat on the lawns of the politicians in tents, piss in the water fountains and shit in the flower beds of said politicians
Or they could go to work and support themselves.
Work where? Far more people than jobs in Spain.
It's all good except one little detail, just a minor one. GS used FED PRINTED FREE PONZI MONEY to buy those apartments. So, they get a whole bunch of interest free money from the Fed which the Fed (BoA, BoL, DB,etc) "prints out of nowhere, they buy real wealth with it ( apartments) which they got at distressed prices because the current tenants are loosers and voila, they now expect market rates for apartments they bought with interest free funny fiat.
Step 1: Steal underpants
Step 2: ????
Step 3: PROFIT!
GS would say dont hate the player hate the game
Absa-f'n-lutely spot on Tarabel.
Absa-f'n-lutely spot on Tarabel.
Sheeple and .... "until enough is enough"... ROFL ... LMAO
Wake me up again after another zillions of Stone ages.
"Unemployed hairdresser and mother-of-three..." And there you have it. I'm sure the state told her to become a hairdresser and have three kids.
No, the banksters stole their money to pay the State to make her like that. State education? Capiche?
If you like your rent, you can keep your rent.
Never gets old...
GS: "What we are really after is an Escorial, but for now (15% !!!) of public housing is a good start."
They should hire a good Jewish lawyer and have him check the Edict of Expulsion of 1492 to see if it was ever repealed.
Why did the buildings needed to be sold? To raise cash? Why? Every CB on the planet is printing like there's no tomorrow and could fund every shortfall imaginable. But they don't do that, do they? Instead the CBs give the money to the Goldmans and Blackstones out there to "purchase" these buildings and collect rents.
Ownership is no longer an issue here. What are Goldman or Blackstone going to do if the tenants collectively refuse to making any rent payments? Go cry to the Spanish government and ask for enforcements? Go right ahead, that next revolution or civil war are long overdue.
Goldman gets their shit for nothing and acts all high and mighty that they can buy up anything and hold the title. Go fuck yourself Goldman!
Spaniards, listen! You cannot win this game - ever. Grab some cojones and organize a complete meltdown in all rent payments to anything owned by American or other foreign vulture capitalist groups.
Don't pay attention to the government cry babies who say they need to have funding. THERE IS NEVER GOING TO BE ENOUGH FUNDING ANYMORE!
THE RUG NEEDS TO BE PULLED SOON AND SWIFTLY!
The longer the shylocks are able to bamboozle the world with their money changing, the longer will they have time to buy up everything and anything they want with money from thin air!
Yes...the elite prefer slavery...
The shysters have been pretty much on a buying spree of media, infrastructure, and various other companies in this economy.
Just wait till Goldman Sachs tries to do the same in Israel.
A few years ago:
Guillotine display stuns Rothschild's 'tent city'French Revolution symbol becomes main attraction at Tel Aviv's protest center, as rallies continue to spread across country. Protest leaders say Beersheba to hold next mass rally
http://www.ynetnews.com/articles/0,7340,L-4107640,00.html
+1 walküre
best comment on this article thus far
How can the renters not be thinking about shooting Goldmanites?
Been dere done dat.
1865.
Kill The Poor
Did Goldman and Blackstone sell the property to China?
Spain wont sell directly to the Chinese?
Arrest Loyd Blankfein before he kills you and your family M'Fers.
i remember marta. beautiful spanish foreign exchange student. gorgeous. wonderful woman. daddy was into growing tobacco. rich she was.
i recently spoke to her. she is moving from spain with her husband because there is no work.
Can you smell it? I smell a shit storm a coming.
To buy property in a socialist country is nuts. I'm sure the Spanish courts will find whatever socialist entity sold the property didn't have proper title and Goldman can go pound sand. Also these pop up adds that block half of my smart phone screen suck worse than Goldman.
https://adblockplus.org/
I think they have something for phones.
Did nobody tell him he's supposed to be a dwarf ?
https://www.academia.edu/8945501/Dinosaur_Death_by_Dwarfism
Lima,
Ok, Changing subject after reading your link -- So, the dinosaurs just died, laid there, decomposed sank into the mud and earth and clustered/collected into large pools so that the USA could take-over countries to pump the dinosaur juice out to put in trains, planes and automobiles? Damn...
The tenants have been living in housing without paying the cost of the housing. The govt. is going broke and cannot afford to provide free housing any longer. Is there surprise that the govt. is unable to meet the demand for free housing?
Rather than make the corrections themselves, the toadies have sold the properties to investors. Let those investors take the heat for increasing the rents. Govt. got the cash and abandonded the tenants.
Why did you omit the bankers who robbed everyone and set it all up this way?
Equality 7-25-1 Why did you omit the bankers who robbed everyone and set it all up this way?
---
Probably for the same reason you omit that the Government set it up that way.
Who subsidized the bankers? Government
Who subsidized the renters? Government
Getting the picture? Government
Who controls government? You seem to want to avoid the details and ignore the circular loop.
Please don't blame the joos...they need to make money too.
Definitely don't blame the jews. All this is being carried out in their name. Sure, the smarter whores among them (Netanyahu) extort special gifts from their accomplices, but the percent of sleezy always thieving child molesting jews is *the same* as any other demographic.
We're being hustled by a third party, like a divorce lawyer.
*Just* like a divorce lawyer.
So are all the real, good, jews, but they're the man in the case being judged by the same dude who set them up.
Divide and rule.
After they pillaged and plundered America now they will do the same with Europe. And just you wait until this 'free trade' agreement between the US and EU will be implemented (negotiated in all secrecy btw.) Then Europe will be forced to eat GMO and growth hormone infested US meat while the people need to give up their labor rights and the social securities will be handed over to corporations. Robber barren capitalism will implement a policy of scorched earth. Only if the sheep get off their behinds and attack the wolves there is possibility to stay away from this mess. Cause for evil to prevail all it takes is for good men (or sheep) to do nothing.
Spain may be the Greenest country in the EU. For every one job gained investing in solar/wind power they lost two. Still, they do have the Green bragging rights.
The Financial criminal syndicate strikes again
I hear Detroit sold a pool of 6000 foreclosure properties for an average of $533 each, worst part is the current post bankruptcy water & sewr debt is $4000 each, and the new 6000 property landlord is a tax free nonprofit.
Filing is just the beginning.
Spain needs microhouses.
Fucking Awesome God I love humans !!!!!!!!!!!! :)
As was predicted here weeks ago...
http://www.globaldeflationnews.com/goldman-sachs-turns-slum-lord-vampire...
Did anyone sign a new contract?
50 Euro's is ridiculously cheap for a flat? And she was totally unemployed? or just not reporting her income as a hairdresser? I'm not sure who is robbing who.
Consider this more proof that we are all slaves. A while back I stumbled upon a blog on WordPress .com written by Gerry Spence who was born and educated in the small towns of Wyoming where he has practiced law for almost fifty-five years. Spence has spent his lifetime representing and protecting victims of the legal system from what he calls The New Slave Master: big corporations and big government.
Below is part of a post Spence published, he uses the line, "With its endless propaganda the Moneyed Master has caused its slaves to believe they are free." I agree with him, and also contend that while the military-industrial complex is still massive and evil we must now focus on our new worse enemy, in a nut shell we must also watch out for the "Government-Financial Complex".
http://brucewilds.blogspot.com/2012/02/we-are-all-slaves-interesting-thought.html
O homines ad servitutem paratos!
Sheep don't think, "Oh no, Emma just got eaten by wolves! We must fight together to defeat this menace!" They think "Oh good, with Emma gone, there's more grass for me."