via Zwartz Talk:
August 15, 2016
Los Angeles Falls Prey To Predatory Billionaires
As has been explained, the Los Angeles City Council operates according to an unlawful vote trading pact, which Penal Code 86 criminalized in 2006. Without this vote trading, Los Angeles City Council would not have approved the gift of over $2 billion of tax dollars to Garcetti’s real estate developer buddies.
Now that Wall Street is balking at financing any more of the luxury apartments and condos for which Garcetti demolished thousands of poor people’s homes, a new scam has arisen. The City will raise $1.2 Billion in bonds (cost to tax payers $2.04 Billion). Then the Garcetti will dole out the construction money to his best buds who will then sprinkle some affordable units among it luxury units.
When the developers’ LLCs and LLPs go bankrupt, the City still has to pay off the bond holders. Who will they be? Goldman Sachs and other Wall Street firms who would not make loans directly to developers to further over build in the higher end apartment market in LA. By this scam, the developers rake in over a billion dollars, Wall Street earns an outrage interest on the LA $1.2 Billion bonds, and Angelenos are left to pay off Wall Street.
Read More HERE