WSJ: Plotting a Securitization Sequel (Here we go again)

[antigop]

http://online.wsj.com/article/SB10000872396390444097904577535453115674034.html

Four years after mortgage-linked deals played a starring role in the worst financial crisis in decades, banks and real-estate investors are at work on a new type of security tied to the housing market.

This time, financial firms are seeking to engineer deals backed by the rental payments of residents living in previously foreclosed homes.

In recent months, firms such as Colony American Homes and Waypoint Homes have snapped up houses in foreclosure and rented them. Backed by investment banks and credit-rating firms, these firms think they have spotted a new opportunity: Packaging thousands of those rental payments into securities ...

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[Demeter]

1. And it's an ugly one

they can't be serious.

[mother earth]

2. Welcome in the new slumlords, bottom feeders...get the new number tallies out straight away,

recession over.

[bemildred]

3. Only a new bubble can save us from the old bubble.

This gets around all those pesky recording and reporting requirements.

[dixiegrrrrl]

4. Car loans, student debt, and now rental payments.

This was very predictable.
Betcha these securitizations will have all the problems of the mortgage scheme, too.

[mbperrin]

5. Trillions tied up in shadow investments, rather than real things.

That's why the world economy is shit. Everyone's buying tulip bulbs.