EXACTLY! I was thinking about this exact question today. Its diabolical, inhumane, and kinda genius. When the market melts down ... and it will melt down, yhere is no way to know the damage by asset class. HOWEVER, if u want to park billions in an asset class that will guarantee you a net annual positive return, residential real-estate is it. Think of it ... as the bond and stock markets disintegrate no asset class will be safe, but if u can park a few billion in houses, the value may fluctuate, but u will in the aggregate, receive rents, like a coupon rate. Its gonna be somewhere around 3-5% Annual after admin costs.
Its basically turning residential properties into “bonds”.
Not exactly....
Those 3% down government backed home loans are a problem. They add no additional value - only drive up the cost of housing.
So the reason that they work is because they are traded and traded and traded through mortgage backed securities and derivatives.
Residential real estate is in for a reckoning. I just wanted to give you my two-cents. Michael Burry likes property with fresh water rights. That's a two-pronged bet - one on the land and one on the water - and I like it better.
BlackRock is not taking out mortgages. The real-estate is nothing more than a 15, 20, 30 year “bond” to them. As long as they are earning better than the US treasuries rates, they are good. They couldn't care less about prices, they can easily manipulate the market prices by creating a lumber, copper, whatever Shortage.
I don't know what to make of all of it, but I had an interesting thought the other day: what if Infinity War and the "Thanos snap" was meant as predictive programming? To prepare us for a world where half the population suddenly just disappeared?
Then ask yourself the question Why Blackrock and pension funds are overpaying and buying up all of the houses on the market.
Then ask yourself WHY Bill Gates is buying up all of the farmland in the US.
Those are assets whose value will fall if there is a mass die off…. Fewer people means less land needed to feed them and fewer houses to fill. I’d bet that they’re anticipating increased demand for food and housing as inflation ticks up.
Make of this what you will.
Then ask yourself the question Why Blackrock and pension funds are overpaying and buying up all of the houses on the market.
Then ask yourself WHY Bill Gates is buying up all of the farmland in the US.
What do they know?
They are called investments. They are buying tangible goods that hold their value during times of financial uncertainty.
I should invest in aluminum foil, considering all the hats people are making for themselves over every little thing that comes along...
EXACTLY! I was thinking about this exact question today. Its diabolical, inhumane, and kinda genius. When the market melts down ... and it will melt down, yhere is no way to know the damage by asset class. HOWEVER, if u want to park billions in an asset class that will guarantee you a net annual positive return, residential real-estate is it. Think of it ... as the bond and stock markets disintegrate no asset class will be safe, but if u can park a few billion in houses, the value may fluctuate, but u will in the aggregate, receive rents, like a coupon rate. Its gonna be somewhere around 3-5% Annual after admin costs.
Its basically turning residential properties into “bonds”.
Not exactly.... Those 3% down government backed home loans are a problem. They add no additional value - only drive up the cost of housing.
So the reason that they work is because they are traded and traded and traded through mortgage backed securities and derivatives.
Residential real estate is in for a reckoning. I just wanted to give you my two-cents. Michael Burry likes property with fresh water rights. That's a two-pronged bet - one on the land and one on the water - and I like it better.
BlackRock is not taking out mortgages. The real-estate is nothing more than a 15, 20, 30 year “bond” to them. As long as they are earning better than the US treasuries rates, they are good. They couldn't care less about prices, they can easily manipulate the market prices by creating a lumber, copper, whatever Shortage.
His assets seized, as part of patriot plan, I reckon
I don't know what to make of all of it, but I had an interesting thought the other day: what if Infinity War and the "Thanos snap" was meant as predictive programming? To prepare us for a world where half the population suddenly just disappeared?
Rapture.
Those are assets whose value will fall if there is a mass die off…. Fewer people means less land needed to feed them and fewer houses to fill. I’d bet that they’re anticipating increased demand for food and housing as inflation ticks up.