Will the government ELIMINATE "small" investors?
Congress is trying to greatly restrict seller financing. The US House recently passed HR 1728 which limits you as an individual to sell real property using seller financing to only once every 36 months (HR 1728 Sec 101 Definition (3)(E)).
Why are they doing this?
Because THEY want to be the bank. They want to control when and where you get your money.
This is bad news for the small investors. Another threat to us all will be from Hedge Funds.
Hedge funds will benefit from government plans to remove toxic assets from the books of crippled financial institutions. Although the burden will be placed on the shoulders of American taxpayers, only professional investors will benefit from these deals. The bailout plans provide these hedge funds with tons of east credit, limits their losses, and allows them to capture a disproportionate chunk of the benefits if the investment pans out. This will create an environment that is ripe for hedge funds to invest in distressed real estate assets. Think about it, wouldn’t banks be more inclined to sell junk assets in chunks of $50 million as opposed to chunks of $5,000.