Is Wall Street Destroying the American Dream?
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- Опубликовано: 12 авг 2024
- Is Wall Street actually buying up all the housing... or is something far worse going on?
Featuring interviews with Ro Khanna, the U.S. Representative for California's 17th District, Rick Palacios Jr, the Director of Research at John Burns Research and Consulting, and several beavers.
Sliceonomics is a podcast co-produced with Public.com
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All articles and works cited here: docs.google.com/document/d/1_...
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0:00 - 00:51 - Intro
00:51 - 01:59 - Housing Market Overview
01:59 - 06:26 - What exactly is 'wall street'?
06:26 - 12:02 - Housing Crisis
12:02 - 16:44 - Fixing Crisis
16:44 - 18:22 - Community, General Kyla Monologue
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Hey there, got here by way of tiktok. Great job on these longer form videos. They really help you communicate the issues clearly and flex the research you've done. Keep up the excellent content!
Thank you, frfr. Truly top notch content and I’m praying for its virality, blessed be the algodrithms & the sharing folk🍻
Great content, as always! Thanks for creating this!
Always love your videos. I learn something new, and get multiple perspectives/variables on the topic to see a broader picture.
Amazing research and presentation. Thank you!
We need more beaver B roll. I would also like to request some raccoon B roll. Maybe one going through some trash while talking about the current housing market. Maybe have one waddling when talking about the vibe session.
We can also relax the 2 stair case requirement on 4+ story dwellings. They don't offer the fire safety they once did and other fire safety measures do more to offset risk of fire injury.
beaver shots are brilliant
Interesting insight. Great episode
Deep. Tons of info. You work hard 👏👏👏👏👏❤️
Loved the little drawing intro Kyla!
Oh im glad you liked it!!
Agree with u, Kyla! Greetings from Brazil 🇧🇷
Greetings!
wait a second, Ro Khanna is saying that in 1968, a Sears sales associate was retiring in 1968 with $1 million in income in today's money ? I'm assuming that is because of stock options, their hourly wages at the very end, and maybe a pension? Can anyone double check this?
AirBNB is destroying the American Dream. There is incredible profits to be made to buying single family houses & putting them on AirBNB. Look at communities on the New Jersey Shore. Home prices have tripled. People buying them all up and throwing them on airBNB and the like. People rent them weekly for the price of the mortgage payment. Free houses.
This is sort of a collection of circular arguments. Are more rental options a good thing or a bad thing? Does everyone need to or want to own a home?
So-called "Wall Street" landlords do not purposely buy homes and leave them vacant as seems to be suggested. What would be the logic to this?
What Ro Khanna wants is socialized housing of some sort, yet the housing policies of his own district have resulted in the least affordable housing prices anywhere in the country, which is what is likely to happen with even more regulation nationally. No one will get individuals or investors to build, buy or manage uneconomic housing units, and so if you want them the Government has to build uneconomic housing units.
Which will then lead to less housing overall not more, as others stop creating supply and just exacerbate the problem. More spending with less taxes will also cause rates to stay or go higher, not lower, thereby exacerbating the situation further, this is the end state. Spending money that is not collected anywhere is the root cause of the inflation impacting both the cost to build and mortgage rates. Doing more of this will make it worse not better.
The US economy quite naturally produces a wide range of home ownership and home rental options right now, there are many options at every price point they just may not match what people would like to have at that same price point or where they'd prefer to live.
That's how scarcity works and it would normally incent more supply and solutions, but barriers to more supply are the real culprit here, not investors or any one else that is somehow stopping that from happening.
Supply and demand is all that matters at the end of the day. You can't simply kick baby boomers out of their homes, or confiscate them below market or lament that higher rates aren't forcing them out because they had the audacity to pay off their mortgages.
The low interest rate for a long period of time is what fueled the housing problem and car prices because people bought things on loans. This is the reason we are feeling inflation. Everybody talks about rising grocery prices when talking inflation while the cost of housing has tripled or quadrupled. Why don't they see housing as inflation? I believe housing is the root cause of this inflation.
I think it's fascinating that most of the Western world has a housing crisis, but each country has their own differing local diagnosis of why.
Does country really have a unique reason for a common problem?
It has to do with how each countries central government handles housing subsidies. Different Policy creates different problems.
Huge millennial baby boom and increased immigration to western countries is definitely a factor
@@FF-po2xi just the baby boom and 50 years of denigrating construction workers. It's been called the job you have to take if you can't get into college.
Now college people have to pay construction workers more than they make to fix or build a home.
1-9 houses, aka short term rentals or Airbnb’s. Most of those key markets were very popular with remote workers. Really upset at the states that passed laws preventing cities from banning STR.
why the beaver?
Nice editing style
As an outsider I think Americans need a reconing with the idea that home ownership is essential. Having access to affordable mid-rise rentals, owned and operated by nonprofits, would likely alleviate a lot of stress for many. However, anyone I talk to about it with seem adverse to it.
Americans are individualists unfortunately
Ur saying that like we have a choice
Until those nonprofits get co-opted by xyz. We’re a bit jaded by institutional greed over here, or at least should be…
Portland OR, for one, is having a lot of success with sixplexes on former SFH lots.
Yes.
great video, i like how you provide sources and information backing your statements
got to!
Excellent video as usual Kyla
thank you!
They can keep their greedy houses I will live in my car
Might that breakdown of landlords be gamed by PE firms? You can easily cap the number of homes owned by any one individual LLC…also probably legally advisable to decentralize the structure
Yes but what’s going on with the virtual Lego set??
Who is the investor that's buying houses and leaving them empty?
And Build to Suit doesn't compete with buyers. Those developments are built for them they aren't individual lots. They can't ne sold individually.
There's only two components to affordability. The price of the home, and the amount of money one has for a home. Wages have been stagnant for 40 years (thank you Reaganomics), and since the 40's we have only been building single family homes (supply). Also Zoning/NIMBYs. The end.
the purpose of a system is what it does
Welcome to democracy. I hope you have as much fun as the rest of us.
What happened on the 8:10 chart between 1970 and 1980 that made the cost of housing rise constantly adjusted for incomes after being stable for the prior 50 years?
Neo liberalism
A failure of the government to protect markets from bad actors
Wtfhappenedin1971
;)@@FF-po2xi
Vacancy tax is a good idea. The housing problem in Spain looks a lot like the US. The Constitution of Spain says that every citizen has a right to SHELTER, but that is not necessarily owning a home. If an institution buys 1000 homes, rents them out, they have profitability, the individual has sustainability, I think that works out. Maybe something towards triple-net lease and 10yr periods so you can do some reno and amortize it, but not everyone has to own a piece of land. You can even get back at Wall Street by putting that down payment into a REIT 😆
You know what other crisis we're in? Uploading 720p videos in 2024.
Lol 720 is still technically HD, and is very adequate
beavers figured it out, so can we!
Kyla, adding more government "solutions" to solve a problem created by government "solutions" is not a solution, but a guarantee of continued failure. Government is already embedded in all aspects of the housing market - from where they are built (zoning), when they are built (funding), who builds them (approvals), how they are built (regulations), why they are built (subsidies/opportunity zones..) and what is built (code/restrictions) and the results are, as you share, not ideal. No matter how well intentioned the underlying promise was... I believe Milton Freeman had some insights into this helpful attitude of government intervention that might be worth another video. Keep up the great work. Love your inquisitive mind!
i mean we can come up with countless reasons why we can't own homes... and at the end of the day, doesn't change anything just gotta work with what we have and try our best.
I sold two of my homes in 2021/2022 that had 5.75 rate and 5.25 I kept two that had 3.1 and mine that is 2.75 I bought a lot of stocks in 2022/2023 always buy cheap equity and fear
they are saying that kyla is goated with the sauce and i agree
thank you for making this stuff interesting and understandable
thank you!
There is a claim that Fannie Mae and fredi Mac is subsidizing wall streets loans to buy single family homes. I can’t finds anything that supports this. Can anyone clarify this?
He's lying that guy is an idiot. That whole bill is a bunch of made up B.S.
Investors buying houses to leave them empty?????? Where's that?
bottom line, for every dollar that comes into existence x amount of it should go into housing development. supply/demand.
Yep. That drives the price even higher and I build houses. I support this proposal 100%
It kinda then seems to me like the “cause” of the housing market crisis is arbitrary, as the underlying driving force for all of the causes mentioned is just the direct correlation between wealth and home ownership, no? The two biggest purchases a family is ever really gonna do is 1. A home, and 2. A car, yet the car market doesn’t have these problems because a car is a depreciating asset. You’re never gonna have millions of vacant cars on a car lot, because every second those cars sit empty is lost money to the current dealership that owns them. The car market I think is structured in the exact way you already alluded to in the video, not as an investment but a life choice. You rent (lease) a car when you know you’ll be switching frequently, you buy when you know you’ll have it for a while. How do we create an underlying driving force that doesn’t view home ownership as an equivalent to wealth?
Again, at a certain extent the car market is split into 2 categories; cars as a utility and cars as an investment. A Toyota Camry on a dealership may be a money pit the faster it doesn’t sell, but a Porsche 911 on a dealership can only be a good thing, because it’s considered an investment and an appreciating asset. The supply/demand issues I think only exist when the product is treated as an investment rather than a utility. I can order a Honda civic right now today, but I’d be on a year+ waiting list to get something like a Porsche.
And then that kinda comes to my final question, which you also alluded to; is the natural solution to this simply a form of socialism? As you discussed, we’ve basically completed removed all of the common-man’s potential wealth generating assets other than the home, as seen in the decrease in company equity programs. If all of this is occurring because everyone’s wealth is tied up in their homes, is the natural solution to increase wealth-generating ownership opportunities elsewhere? (Namely employee-equity programs in companies, which is also to me a lite-form of the common ownership of production.)
You're an idiot.
Working class people have a 100 times the equity they did a 100 years ago.
They have 30-50 times the amount they did 40 years ago.
Sometimes when you edit the camera slowly pushing in and you start talking faster it has the same energy as being cornered at a party and I love it, it's hilarious
>:-)
Housing shouldn't be an investment vehicle or some frivolous commodity. People need houses, there are a enough houses for everyone, but yet we have a large "homeless" population.
+
Can I plz buy you a better microphone so we can all benefit from a more clear audio conveying all the solid info?
Does it sound bad!
@KylaScanlon Not bad, but not at the quality where its a pleasure to listen to with in ear speakers while biking. There is too much reverb from the room.
Did that guy say we have universal healthcare?
Yes absolutely.
Thanks for sharing your feelings!
We as tax payers bailed them out in 2008 and now they’re repaying us by pricing us out of of housing
You did nothing. It was your rep who gave them our money.
I heard they paid it back though. Idk.
No they aren't. Did you not watch the video?
Boost
Why is there a damn 🦫
love talking about housing policy. i am saddened to see no one is talking about another free market solution -which won’t happen due to strong US property rights & laws but i can dream- which is tenant unions. collective bargaining is important in this because the cash that houses produce are the basis of valuation for investment properties. this would be effective if there was a direct effort to treat housing not as a commodity
-a certain economist from the 1800s was right about this-
These already exist. The problem is that Americans refuse to let housing operate as a market.
That would result in all thw tenants being thrown out in a market like this. You could fill everthing back up no problem.
You're gonna be big.
thank you
Just found this channel and yeah. This is indeed highly relevant and relatable content
Woah, worker ownership of equity in the companies they work for makes little to negative sense. This increasingly concentrates the employee's economic exposure to the employer. The risk of being fired is correlated with deterioration or bankruptcy of their employer.
What makes more sense is to have whatever bonus that a company might give in the form of its own stock to be diverted to an investment in a broad stock index such as the S&P 500.
Yep. 18:23 is a 100 to a 1000 times more equity owned by workers now than a 100 years ago.
And he was talking about the white collar workers getting sears stock.
And
He doesn't know math because him saying someone was retiring from sears with a million a year in income from company stock. That's a lie. What they had 20-40 million in Sears stock?
I'm not sure why we allow individuals and institutions to own more than one home.
Why not?
😊
Wall Street Landlords... a problem, sure, but also...
You didn't establish this is actually a problem in your video. You yourself acknowledged plenty of people are better-off renting than owning.
Final frame should show how much congressman made this last year trading stocks - quite shocking when you see it. makes you think they only go to washington for 1 thing.
1:24 The stock of bonds (municipal bonds, federal bonds ... ) is now 4 times higher than wall street .
The “collectivists” hold the “bonds” (Municipality, State, Federal etc.)
Who are the “collectivists”?
well it's the local policeman, the municipal employee, the teacher, the soldier, the regional federal civil servant... Yes " the collectivists" hold the bonds!
the money is no longer in Wall Street but in the pension funds of the local teacher, they are the real predators in 2024. And she buys everything, precisely to remove them from the "Wall Street listing" ,to anonymously make money without paying dividends.
There r too many people on this earth. This is the issue about everything from our good to the environment and so on.
Nope. This has been proven for the last 500 years since this concept was invented.
The America dream is intact- aka shareholder profits are at an all time high and remain unmolested.
Sounds like you should be buying stock.
"Zoning" makes a lot of sense, there are environmental issues and others that at least in my reality make sense. Making the "zones" more fl$xible will only create rich zones and poor zones.
If i understand the concept of "Zoning". The biggest problem continues to be profit-oriented capitalism, even if this is to the detriment of someone. The American dream, the nightmare of the global economy, the dollar.
Quality content as always
just like the boston example!
"Making the "zones" more fl$xible will only create rich zones and poor zones." This is literally what happens when you implement single family zoning, it was originally conceived to help get around a supreme court ruling banning race based zoning! You could not be more wrong!
Profit oriented capitalism has problems but it's the tool that's brought humanity out of starvation and poverty.
No place on earth has that happened without capitalism
40% increase in housing prices is strangely correlated to the 40% increase in the money supply. bring back the glaas-steagall act.
No it's not. Houses are leveraged some 100 to 1 but moat 10 to 1 through 30 to 1.
Put those multiples against the 40% and that's house much they houses would go up if that's where the money went.😊
One simple solution. Tax the rental income.
How does that solve anything? That just punishes renters.
@spacetoast7783 It needs to cut into the rental profits to drive investors into other assets. I say this as a rental owner.
@@TK-ek5kp You didn't answer my question. How does that solve anything? You're just punishing renters.
They do 😅😅😅😅😅😅😅😅😅😅
And tenants pay all the tax on a rental. When all the programs going after rentals hit in my market and when the taxes go up I bring the paperwork to the tenant and raise the rent.
@@TK-ek5kp You're inane and obviously an AI now that I see the name.
You talk so fast as to make your speech incomprehensible.
Slow down the play speed of the video