We’ve been bandying about ideas on how to fix our housing crisis. Some of the more out-there ideas include bulldozing homes or having the government buy up mortgages, like they did during the last Depresson.
But in Russia, where they know a thing or two about government intervention in the economy, they’re taking things to an extreme:
FT: Russia will spend up to 100bn roubles ($3.7bn, €3bn, £2.3bn) on buying newly built apartments from construction companies, Igor Shuvalov, first deputy prime minister, said yesterday. The move is intended to shore up house prices. Mr Shuvalov added: “In the construction sector we may see a fall in demand. We decided to replace that with government demand.”
Meanwhile, the oligarchs who won out when communism fell are still getting the hookup:
WSJ: The Kremlin is stepping in to bail out one of the country’s richest men, in what could be the first move in a shakeout among the powerful businessmen known as oligarchs, whose holdings are spread throughout the Russian and world economies.
People close to the situation said that on Tuesday Russia allowed Alfa Group, a conglomerate controlled by businessman Mikhail Fridman, to tap its $50 billion rescue fund to pay back a $2 billion loan to a group of banks led by Deutsche Bank AG.
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