New budget deal literally sells America out to foreigners.

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senseamp

senseamp

Lifer
Feb 5, 2006
35,787
6,195
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http://www.bloomberg.com/news/artic...ift-35-year-old-real-estate-tax-on-foreigners

Contained in the $1.1 trillion spending measure that was passed to avoid a government shutdown is a provision that treats foreign pension funds the same as their U.S. counterparts for real estate investments. The provision waives the tax imposed on such investors under the 1980 Foreign Investment in Real Property Tax Act, known as FIRPTA.
“FIRPTA has historically made direct investment in U.S. property a non-starter for trillions of dollars worth of foreign pensions,” said James Corl, a managing director at private equity firm Siguler Guff & Co. “This tax-law modification is a game changer” that could result in hundreds of billions of new capital flows into U.S. real estate.
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So foreigners will buy out American real estate, and on top of sending their jobs there, Americans will also be sending their rent checks to China.

But hey, lobbyists are happy about it, so it's all good:
“By breaking down outdated tax barriers to inbound investment, the FIRPTA relief will help mobilize private capital for real estate and infrastructure projects,” Jeffrey DeBoer, president and chief executive officer of the Real Estate Roundtable, an industry lobbying group, said in a statement.
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shortylickens

shortylickens

No Lifer
Jul 15, 2003
82,854
17,365
136
Not even reading the article, just your text, it seems your thread title is a big fat fucking lie.

Please dont do that.
 
WelshBloke

WelshBloke

Lifer
Jan 12, 2005
30,434
8,097
136
If you're going to sell your debt in dollars you can't really complain if people use those dollars to buy stuff.
 
werepossum

werepossum

Elite Member
Jul 10, 2006
29,873
463
126
WelshBloke said:
If you're going to sell your debt in dollars you can't really complain if people use those dollars to buy stuff.
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Amen. If we are continually borrowing ever more money, then eventually everything here will be owned by people who run surpluses. Oddly, for some reason our government wants to encourage this.
 
Jaskalas

Jaskalas

Lifer
Jun 23, 2004
33,428
7,489
136
senseamp said:
So foreigners will buy out American real estate, and on top of sending their jobs there, Americans will also be sending their rent checks to China.

But hey, lobbyists are happy about it, so it's all good:
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This is why they make 2,000 page bills.
And why they should be opposed every step of the way.
 
mikeymikec

mikeymikec

Lifer
May 19, 2011
17,677
9,524
136
werepossum said:
Amen. If we are continually borrowing ever more money, then eventually everything here will be owned by people who run surpluses. Oddly, for some reason our government wants to encourage this.
Click to expand...

There's a scene in the film 'Margin Call' that springs to mind:

One colleague in an investment company is talking to another about the nature of their jobs: "Jesus, Seth. Listen, if you really wanna do this with your life you have to believe you're necessary and you are. People wanna live like this in their cars and big fuckin' houses they can't even pay for, then you're necessary. The only reason that they all get to continue living like kings is cause we got our fingers on the scales in their favor. I take my hand off and then the whole world gets really fuckin' fair really fuckin' quickly and nobody actually wants that. They say they do but they don't. They want what we have to give them but they also wanna, you know, play innocent and pretend they have no idea where it came from. Well, thats more hypocrisy than I'm willing to swallow, so fuck em. Fuck normal people."
 
G

Greenman

Lifer
Oct 15, 1999
20,358
5,112
136
Isn't this pretty much required result of an economy that doesn't really produce anything?
 
WelshBloke

WelshBloke

Lifer
Jan 12, 2005
30,434
8,097
136
Subyman said:
Why not? What is not to like about having an advantage?
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Well I suppose the main thing that you'd want to avoid. The thing that would make life difficult. The thing that we try not to speak about to much.

The thing that you don't want to do is make buying American debt unattractive.

That would be bad.
 
werepossum

werepossum

Elite Member
Jul 10, 2006
29,873
463
126
mikeymikec said:
There's a scene in the film 'Margin Call' that springs to mind:

One colleague in an investment company is talking to another about the nature of their jobs: "Jesus, Seth. Listen, if you really wanna do this with your life you have to believe you're necessary and you are. People wanna live like this in their cars and big fuckin' houses they can't even pay for, then you're necessary. The only reason that they all get to continue living like kings is cause we got our fingers on the scales in their favor. I take my hand off and then the whole world gets really fuckin' fair really fuckin' quickly and nobody actually wants that. They say they do but they don't. They want what we have to give them but they also wanna, you know, play innocent and pretend they have no idea where it came from. Well, thats more hypocrisy than I'm willing to swallow, so fuck em. Fuck normal people."
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lol I like that.

Greenman said:
Isn't this pretty much required result of an economy that doesn't really produce anything?
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Yep. But at a time when American real estate is a pretty safe investment by worldwide standards, I see no reason we would want to make it cheaper. The taxes that foreign investors don't pay must be made up, either by issuing more debt or by taxing Americans more heavily.
 
OverVolt

OverVolt

Lifer
Aug 31, 2002
14,278
89
91
If true then our housing market is going to be be inflated along with the likes of Canada and Australia.

The housing boom and bust was actually mild compared to the out of control booms happening in Canada and Aussieland right now to my knowledge. Aussieland is actually alot like the USA circa 2004 or 2005 right now. At the peak of housing boom wealth. Its like taking a time machine back 10 years. I wouldn't want to be there in 2018 though. :)

And if foreign real estate investment bumps up real estate prices (and an inflow of trillions will do that) then yes a cut of your rent/mortgage is going to some Chinese retiree. Great. Cause we have so much to go around for the current retirees right. Nope.

Clearly laws put into place by the generation that owns the most real estate wealth. The boomers. They better sell their empty nest homes before everyone realizes broke ass millennials can't afford them.
 
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Thump553

Thump553

Lifer
Jun 2, 2000
12,669
2,424
126
OP must be somewhat young because the exact same Chicken Little argument was made in the seventies and eighties about Japan. Japanese investors and firms did in fact buy a lot of commercial real estate, vastly overpaying for it. When their collapse came they got a double whammy.

Of all the things to stress about, this is pretty minor. From an objective viewpoint the US's economic future is a lot more certain than Red China's. They have pissed away a lot of money on poorly planned and/or unneeded capital improvements and the corruption there is leagues above anything here.
 
M

mrjminer

Platinum Member
Dec 2, 2005
2,739
16
76
Thump553 said:
Of all the things to stress about, this is pretty minor. From an objective viewpoint the US's economic future is a lot more certain than Red China's. They have pissed away a lot of money on poorly planned and/or unneeded capital improvements and the corruption there is leagues above anything here.
Click to expand...

Ignorance is bliss
 
Nebor

Nebor

Lifer
Jun 24, 2003
29,582
12
76
A good portion of the residential and commercial real estate here in Hawaii is already owned by foreigners (mostly newly wealthy Chinese) as a safe store of value beyond the reach of their government. Prices keep going up, more people become working homeless.
 
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