Investors did it. According to the Federal Reserve Bank of New York, real estate investors had an outsized role in the collapse of the mortgage marketplace and the national economy.
The new report claims these investors defaulted in large numbers after the housing bubble burst and thereby contributed importantly to the intensity of the housing cycle’s downward leg.
The reality is different. Without real estate investors a lot of people would be living in parks, home prices would be substantially lower and the national economy would be a whole lot smaller. Rather than fewer real estate investors we need more. Here's why.