Re:Fearing Losses, Banks Are Quietly Dumping Real Estate Loans
by jncfhnb on Monday June 24, 2024 @11:02PM
(#40783957)
Agreed. But, companies are owned primarily by funds that in turn are exposed. If there is some pressuring to save real estate, it’s not the C suite, it’s the stockholding giants
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Re:Fearing Losses, Banks Are Quietly Dumping Real Estate Loans
by mitthrowaway2 on Monday June 24, 2024 @11:06PM
(#40783975)
I think this doesn't get enough attention. The biggest shareholders in many companies are index funds like Vanguard and BlackRock, which often have the right to vote on behalf of the shares in their ETFs. Their interests are in ensuring the entire ETF goes up, and a real estate deleveraging would do the opposite.
Re:Fearing Losses, Banks Are Quietly Dumping Real Estate Loans
by phkahler on Monday June 24, 2024 @11:43PM
(#40784245)
>> Their interests are in ensuring the entire ETF goes up...
Things like automatic enrolment in 401K plans, or automatically bumping employee contributions by 1 percent will also benefit the broad market and funds.
Re:Fearing Losses, Banks Are Quietly Dumping Real Estate Loans
by mitthrowaway2 on Tuesday June 25, 2024 @12:49AM
(#40784595)
Yes, as does curing COVID and protecting the environment.[1] And on the less good side: broad-based price hikes instead of fighting with the competition over market share in a race to the bottom.[2] It remains to be seen whether ETF ownership is connected to "greedflation", but I believe so.
[1] https://newsletterhunt.com/emails/12216
[2] https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2632024