A Huge Housing Bargain -- but Not for You - TheStreet

A Huge Housing Bargain -- but Not for You - TheStreet:

By Roger Arnold

08/18/11 - 05:49 PM EDT

This column by Roger Arnold originally appeared on RealMoney on Aug. 11. For a free trial to RealMoney, follow this link.

NEW YORK (RealMoney) -- The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors -- vulture funds.

These homes, which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value.

You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs(GS_) and its derivatives, as well as foreign sovereign wealth fundsthat can bring a billion dollars or more to each transaction.

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