rent-seeking
see extraction disambiguation
see speculator
merri ok
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passive wealth = money for nothing
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an 6 24
with monthly inflation down to its lowest point in more than two years and heading toward the Federal Reserve's target, the Biden administration on Wednesday celebrated "welcome progress."
But an analysis from Accountable.US showed how more than 100 million peoplewho rent their homes in the U.S. are not seeing the benefits of what one Biden spokesperson called "the great American comeback" in their housing costs, particularly millions of people whose homes are owned by corporate landlords.
The government watchdog found that the six largest corporate landlord companies brought in close to a combined $300 million in increased profits in the first quarter of 2024, with the profits mostly stemming from rent hikes.
Overall in the U.S., rent prices have skyrocketed by 31.4% since 2019 while wages have increased by just 23%, meaning tenants need to earn nearly $80,000 per year to keep from being rent-burdened and spending 30% or more of their income on rent.
The six companies included in the Accountable.US analysis on Wednesday have more than rent increases in common: They have all faced lawsuits regarding their use of the property management software company RealPage, which is alleged to have used an algorithm to fix rent prices, impacting about 16 million rental units in the United States.
The largest net income increase Accountable.US found among the six corporate landlords was that of Camden Property Trust, which increased its net income by 97% in the first quarter of this year to $85.8 million. The company spent $50 million on stock buybacks that it said were made possible by its "weighted average monthly rental rate," which went up nearly 2% year over year.
"Big corporate landlords have kept right on raising rent on everyday families regardless of how high their profits have grown."
Essex Property Trust increased its net income by 76% year over year to more than $285 million, also raising rents by 2.1%, while Equity Residential's income jumped 39% to $305 million as it increased its rental rates by 3.4%, with tenants paying an average of $3,077.
AvalonBay Communities saw its net income increase 18% to $173.6 million, apparently owing both to its "rental and other income" revenue going up by 5.6% and its "management, development, and other fees" for tenants soaring by 68.4% to nearly $1.8 million.
"Big corporate landlords have kept right on raising rent on everyday families regardless of how high their profits have grown. Adding insult to injury, many landlords rewarded a small group of wealthy investors with new handouts at the expense of struggling tenants," said Liz Zelnick, director of the economic security and corporate power program at Accountable.US.
The group's analysis was released weeks after the Federal Bureau of Investigation conducted a raid on an Atlanta-based property management firm in the Department of Justice's antitrust investigation into RealPage regarding "allegations of a nationwide conspiracy to artificially inflate apartment rents."
As Competition Policy International (CPI)reported earlier this month, "RealPage's system, which provides rental price recommendations based on real-time data from landlords, is alleged to be a key tool in manipulating the rental market. The firm's influence covers 70% of multifamily apartment buildings."
"The scheme purportedly operated by encouraging landlords to adopt RealPage's pricing recommendations, a practice they follow 80-90% of the time," reported CPI."This coordinated approach reduces the availability of rental units, driving up prices. One of the architects of RealPage's system reportedly stated that the aim is to prevent landlords from undervaluing their properties, ensuring consistently higher rents across the board."
Zelnick said it was "unsurprising that some of the same companies that needlessly inflated housing costs have worked closely with a software company accused of helping landlords coordinate a massive price fixing scheme. Through-the-roof rent hikes based on greed—not need—have kept many Americans from getting ahead, which is why Congress must do more to support the Biden administration's affordable housing actions."
President Joe Biden has urged Congress to pass legislation to stop price gouging by landlords and to build millions of affordable rental units.
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6 24 ymail judd
over the last four years, rents have skyrocketed by an average of over 30% nationwide and are a major factor in the overall inflation rate. There are a variety of factors behind the increases, including an overall housing shortage. But the Department of Justice is investigating another potential cause: a massive criminal conspiracy among large landlords.
Last month, the FBI reportedly conducted an unannounced raid of Cortland Management, a major corporate landlord based in Atlanta. The surprise search appears to be part of a Department of Justice criminal investigation, first reported by Politico in March, into an alleged scheme among many corporate landlords to artificially increase rents through collusion.
The investigation centers around the use of RealPage, advanced property management software used by many corporate landlords. Following a 2022 exposé by ProPublica, RealPage and landlords that use the software have been named defendants in multiple class action lawsuits, as well as actions filed by the Attorneys General of Arizona and Washington, DC.
According to the lawsuit filed by the State of Arizona in February, landlords that are supposed to be in competition with each other "outsource daily pricing and ongoing revenue oversight" to RealPage. The company allegedly facilitates and encourages landlords to work cooperatively to increase rents. An e-book produced by RealPage says that the company allows corporate landlords who are “technically competitors” to "work together . . . to make us all more successful in our pricing." RealPage bragged that landlords that use its software “continually outpace the market in good times and bad.” In other words, RealPage helps landlords charge higher rates than they would in a truly competitive market. An executive for Camden Property Trust, a corporate landlord based in Houston, said deploying RealPage's software resulted in "pushing people out" with higher rents but ultimately increased revenue by $10 million.
How corporate landlords collude via algorithm
Corporate landlords that use RealPage software dominate the rental market in many metropolitan areas. In Phoenix, according to Arizona's lawsuit, "70% of multifamily apartment units listed in the Phoenix metropolitan area are owned, operated, or managed by companies that have contracted with RealPage." According to the lawsuit filed by DC, 60% of large multifamily buildings (50 units or more) set prices using RealPage's software.
RealPage's former CEO revealed that participating landlords share "occupancy rates, rents charged for each unit and each floorplan, lease terms, amenities, move-in dates, and move-out dates." After feeding in this highly-detailed information that would normally be kept proprietary, "landlords agree to outsource their pricing authority to RealPage—rather than competing with one another on price." RealPage even has a feature called "auto-pilot" that lets the software set rent prices without any human approval or intervention.
The system has resulted in large rent increases that were previously unthinkable, according to RealPage's own executives. “As a property manager, very few of us would be willing to actually raise rents double digits within a single month by doing it manually," RealPage executive Andrew Bowen said.
Arizona's lawsuit alleges that RealPage "puts significant pressure on participants to ensure they adopt RealPage’s prices." Specifically, RealPage employs "pricing advisors" who "meet with landlords to ensure that properties are implementing RealPage’s set rates." This is described by Arizona as "policing the conspiracy to make sure no one cheats by lowering prices and trying to gain market share." RealPage training materials, cited in the DC lawsuit, advise that landlords "should be compliant" with the software's pricing recommendations. The Arizona lawsuit claims that landlords "agree that if they fail to consistently implement RealPage’s set rates, their contract with RealPage will be terminated." Jeffrey Roper, who created the RealPage algorithm, explained that if "you have idiots undervaluing, it costs the whole system."
According to DC's lawsuit, this practice shows that "while RealPage sought to grow the cartel to maximize profits, it also understood the importance of universal adherence and was willing to expel an occasional cartel member to demonstrate its commitment to enforcement of the agreed-upon pricing scheme." While the RealPage software eliminates the need for competitors to meet in a smoke-filled room, Arizona asserts that it "is still illegal… for competitors to join together decision-making power to raise, depress, fix, or stabilize prices—no matter the technology used to effect a price-fixing agreement."
Why the feds are focusing on Atlanta
Why is the FBI specifically raiding a corporate landlord that uses RealPage in Atlanta? The agency is not commenting, but a class-action lawsuit revealed that landlords who use RealPage control a large number of properties in the Atlanta area. According to the plaintiffs, landlords using RealPage "account for over 53% of the multifamily rental market in the Atlanta Submarket." This is a map, included in the complaint, which shows properties using RealPage software in the Atlanta area.
...
The use of RealPage in the Atlanta area has coincided with a sharp increase in rental prices. Overall, rents in Atlanta are up 56% since 2016.
Where will the FBI conduct its next raid? They have plenty of choices. RealPage also controls a large share of the market in Baltimore, Charlotte, Houston, and Miami.
RealPage says this is all a big misunderstanding. After DC filed its lawsuit in November 2023, the company said its critics were incorrectly drawing "a causal connection between revenue management software like ours and increases in market-wide rents." It said the lawsuit was "wrong on both the facts and the law and we will vigorously defend against it."
Not everyone involved in the scheme is so confident. Earlier this year, two corporate landlords named in a class action lawsuit filed by tenants reached settlements with the plaintiffs. The terms were not disclosed.
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aha surveil = extraction eg mar a lago perlmutter VA vet data
aha cf moral aspects of debt in graeber ilan ziv caplism
adam smith says cap'lism cannot surrvive rent-seeking rentier
prison is state of exception, pioneeer loss of privacy/surveillance
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random intercept grab 921
FEDERAL PRISONS’ SWITCH TO SCANNING MAIL IS A SURVEILLANCE NIGHTMARE
Lauren Gill
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https://www.alternet.org/2020/08/elizabeth-warren-sounds-the-alarm-on-a-mounting-housing-crisis-and-the-profiteers-who-will-take-advantage/
During her 2020 presidential primary campaign, Sen. Elizabeth Warren had a lot to say about the United States’ housing crisis — and after suspending her campaign and endorsing former Vice President Joe Biden (now the presumptive Democratic nominee), the Massachusetts senator continued to address the subject. Warren, in an op-ed she wrote for the Washington Post with Carroll Fife (director of the Oakland office of the Alliance of Californians for Community Empowerment), stresses that the coronavirus pandemic has made a brutal housing crisis even worse. And private equity firms, according to Warren and Fife, are hoping to cash in on the misery by gobbling up “distressed real estate.”
“The nation is facing an acceleratinghousing crisis,” Warren and Fife warn. “Too many people had no stable housing before the pandemic hit, and COVID-19 has made the problem even worse. Renters who were already facing an affordable housing shortage — with many spending more than half of their income on rent — now have no federal rental assistance or federal protection from eviction. Homeowners have less than a month left of foreclosure protection. And more than 30 million people receiving unemployment insurance just saw their benefits cut by $600 a week, raising the threat of a wave of defaults that could trigger a double-dip recession.”
But while “families” see as a “looming catastrophe,” they add, “private equityfirms just see dollar signs.” And Warren and Fife cite a Wall Street Journal report that investors are hoping to buy “distressed real-estate assets at bargain prices.”
According to Warren and Fife, such “profiteering” is “straight out of private equity’s playbook during the 2008 financial crisis."
"Following the 2008 crash,” they explain, “corporations that grabbed up properties on the cheap, converted those homes into rentals and turned into the worst kind of slumlords — jacking up rents, neglecting maintenance requests and health and safety concerns, and eagerly assessing fines, fees and eviction notices. Other corporate-owned homes were left vacant in a hoarding of housing stock. We cannot stand by while this history repeats itself.”
Warren and Fife’s recommendations range from “strong federal legislation to guard against the coming wave of evictions and foreclosures, including emergency rental assistance” to preventing “predatory companies from further destabilizing neighborhoods and profiting off the displacement of families.”
“If we fail to prevent another private equity real estate grab,” Warren and Fife warn, “we risk allowing another massive upheaval in the housing market that could wreak more havoc on low-income Americans — especially black and brown families still recovering from losing their homes a decade ago. Against a decades-long backdrop of racist federal policies that have impeded black homeownership, lawmakers’ refusal to proactively address this problem would be an indefensible oversight that would again give Wall Street carte blanche to use a national crisis to enact a massive, generational transfer of wealth from vulnerable Americans to corporations."
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https://www.alternet.org/2020/04/who-cares-let-em-get-wiped-out-stunning-cnbc-anchor-venture-capitalist-says-let-hedge-funds-fail-and-save-main-street/
no lnx
‘Who cares? Let ’em get wiped out’: Stunning CNBC anchor, venture capitalist says let hedge funds fail and save main street
Written by Common Dreams April 10, 2020
Venture capitalist Chamath Palihapitiya stunned CNBC anchor Scott Wapner and generated widespread applause on social media by declaring in a television interview Thursday that the U.S. government should let hedge funds and billionaire CEOs “get wiped out” by the coronavirus-induced economic collapse and instead focus its attention on rescuing Main Street.
“On Main Street today, people are getting wiped out. And right now, rich CEOs are not, boards that had horrible governance are not, hedge funds are not. People are.”
—Chamath Palihapitiya, CEO of Social Capital
When Wapner, seemingly incredulous at what he was hearing, asked Palihapitiya why he would support the collapse of large companies, the Social Capital CEO said “this is a lie that’s been purported by Wall Street.”
“When a company fails, it does not fire their employees, it goes through a packaged bankruptcy,” said Palihapitiya. “If anything what happens is the people who have the pensions inside the companies, the employees of these companies, end up owning more of the company. The people that get wiped out are the speculators that own the unsecured tranches of debt or the folks that own the equity. And by the way, those are the rules of the game. That’s right. These are the people that purport to be the most sophisticated investors in the world. They deserve to get wiped out.”...
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no lnx
Vulture capitalists are picking us dry: Why consumer debt buyers are on the rise
The great recession laid waste to the U.S. economy. Now debt collectors are feasting on the carrion
JIM HIGHTOWER
MARCH 22, 2015
Good news, people: The "boom" is back! Yes, good times are here again, thanks to an economic boom that's being generated by (of all things) bad times.
As you might know from your own experiences, tens of millions of Americans have been hit hard, knocked down and held down in recent years by the collapse of jobs and wages. This calamity has led to a second blow for millions of the same families, who find themselves suddenly buried in piles of overdue bills for credit card charges, student loans and other consumer debt.
But the good news is that there's a bright silver lining in that dark financial cloud. Only, it's not for the indebted families, but for a booming breed of finance hucksters known as consumer debt buyers. Believe it or not, in the warped world of high finance,"There's gold in them thar hills" of bad debt, and where there's gold, there are diggers.
Whenever a corporation issues a statement declaring that it's committed to "treating consumers fairly and with respect," chances are, it's not.
After all, why say such a thing, when actually practicing it would make a statement unnecessary? Indeed, with names like Encore Capital Group and Sherman Financial, these miners of human misery buy bales of these unpaid bills from banks and other lenders, paying pennies on the dollar. Then they unleash packs of their hard-nosed, aggressive collectors on the families. If they still can't extract payment, the corporate debt profiteers turn to their meanest dog: The courts.
Debt firms routinely file thousands of lawsuits a day against financially devastated Americans. They know that most debtors can't understand the legal gibberish filed against them, can't afford a lawyer, can't take time off to go to a court hearing and can't mount an effective defense against the corporate lawyers. So, some 95 percent of these lawsuits produce default judgments against hapless borrowers -- meaning debt buyers can then confiscate the wages of borrowers or freeze their bank accounts.
This boom in vulture capitalism is disgusting -- but, worse, it's subsidized by us taxpayers! We pay for the judicial system -- the judges, courtrooms and endless rounds of hearings. Predatory debt corporations have perverted our so-called justice system into their own subsidiary for squeezing profits out of destitute debtors.
This is why New York Attorney General Eric Schneiderman has started going after these for-profit corporate debt collectors. He found that Encore, based in San Diego, filed nearly 240,000 lawsuits against debtors in a recent four-year period, using the courts as its private collection arm. Problem is, Encore's bulk filing of lawsuits against the hard-pressed borrowers are rife with errors, out-of-date payment data, fabricated credit card statements, etc. With debt buyers scooping up millions of overdue bills each year from lenders, tons of them are missing original loan documents, payment histories and other proof of debt.
Debt predators, however, scoot around this lack of facts by simply having their employees sign affidavits asserting that the level of money owed is accurate. Judges, overwhelmed by the unending flood of lawsuits filed by Encore et al, have accepted those affidavits as true, thus ruling in favor of the corporations. But Schneiderman found that -- Surprise! -- affidavits were simply being rubber-stamped by company employees, with no effort to ensure the truth of the information. An employee of one large debt-buyer testified that his corporation ran an assembly-line scheme in which he signed about 2,000 affidavits a day.
This is no minor scam -- 1 in 7 adults in the U.S. is under pursuit by debt collectors. It's hard enough for struggling families to claw their way out from under the economic crash without having lying, cheating predator corporations twist the court system to pick their pockets and shut off their hope of recovery.
JIM HIGHTOWER
Jim Hightower's most recent book is "Let's Stop Beating Around the Bush." He produces a monthly newsletter, The Hightower Lowdown, and a syndicated daily radio commentary.
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rental housing becomes the next bubble gt recession CDS? blackstone
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https://www.reuters.com/article/us-global-housing-rights/global-investors-wreaking-havoc-on-low-income-renters-u-n-says-idUSKCN1R71L5
3/19
(Thomson Reuters Foundation) -Large investment firms are worsening global housing shortages by forcing vulnerable out of low-income homes and upgrading them for higher rents, said United Nations human rights experts, who appealed to countries to tighten up regulation.
These firms had become the world’s biggest landlords, and “converted homes into financial instruments and investments”, said Leilani Farha, U.N. Special Rapporteur on the right to adequate housing, in a statement released Tuesday.
“Landlords have become faceless corporations wreaking havoc with tenants’ right to security and contributing to the global housing crisis,” she said.
Farha and Surya Deva, chairman of the U.N. Working Group on business and human rights, wrote to Blackstone Group LP, the world’s largest private equity firm, and authorities in Denmark, Ireland, Spain, Sweden, the United States and Czech Republic.[have laws that req action; US not sign treaties/agreement int'l]
Preferential tax laws and weak tenant protections in these countries have left vulnerable communities at risk of eviction and homelessness, they said.
“We remind all States, that while gold is a commodity, housing is not, it’s a human right,” they said.
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1119
invert yield curve; homewreckers book 8 mil foreclosures; big % llc shell corps; // CDO; R wolff says banks can't deal with hit 1/2 of Gt Recession , get loans to cover loans; mnuchin etc wilbur recalled gov't baillout after S&L; mnu sez put 1.x billion but pain nothing for indybank and then got subsidies to foreclose?! // get car for free, put some bucks in then pocket total profit 11/8/19
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new
steve mnu piad 0 for indy bank, and gov't guar lose no money, sold to buddy in same blg (bunch of pluto-crats ) soros, paulsen, wilbur
extensive interview: https://kpfa.org/episode/letters-and-politics-october-23-2019/
https://kpfa.org/episode/upfront-october-21-2019/
aaron glantz homewreckers
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the uber lie: darwin invis hand meritocracy
univ supposed to be great equalizer, but poor get screwed by pred student loans, online trump U scams
https://www.democracynow.org/2019/3/13/cheating_bribes_lies_doj_charges_dozens
Operation Varsity Blues. That’s the name of a sweeping federal probe into what the Justice Department calls the biggest college admissions scam the agency has ever uncovered. On Tuesday, 50 people, including 13 college coaches, were arrested for taking part in a scheme where wealthy parents paid exorbitant bribes to secure spots for their unqualified children in elite schools, including Yale, Stanford, Georgetown, UCLA, USC and Wake Forest. Prosecutors have charged 33 parents, including Hollywood stars Felicity Huffman and Lori Loughlin; Loughlin’s husband, the fashion designer Mossimo Giannulli; and Bill McGlashan, a founder of TPG Capital, one of the largest private equity investment firms in the world. We speak with Ivory Toldson, professor of counseling psychology at Howard University and president of Quality Education for Minorities. His new book is titled “No BS (Bad Stats): Black People Need People Who Believe in Black People Enough Not to Believe Every Bad Thing They Hear About Black People.”
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GOODMAN: So, that’s the FBI special agent talking about this scandal. No actual schools were charged, though people within the schools, like, you know, the head of soccer at Yale, for example. You had these pictures sent in of athletes with their heads photoshopped to be a student who didn’t even play the particular game, in cases like water polo. What message does this scandal send to black and brown children, to white not wealthy children, who believe that higher education is a meritocracy? What do you say to them?
IVORY TOLDSON: Yeah, yeah. Well, I hope it’s a wake-up call for people who have bought into the system that people become wealthy because they have worked hard. It’s a deception that’s pervasive in our society. Among the wealthy, their objective is passive income. You know, they talk actively about making money without working.That’s what they talk about in their own social networks. But yet, when they’re talking to people who may work for them, they try to make it seem like it’s all about working hard. In reality, it should be about working hard. Everybody should work hard for what they have. But there are people in this country, unfortunately, who wouldrather manipulate the system so that some people work hard to get enough, and other people work not at all and get more.
And I think it also does a disservice to their children, because their children will grow up feeling a false sense of entitlement, believing in unearned privilege, believing in inherited wealth and all of the things that will lead to certain types of predatory behaviors, whether it be predatory lending,manipulating markets, predatory landlords—you know, different aspects of society that we’ve all grown to loathe. All of this is cultivated in these types of environments.
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