In our current economic ocean of insanity, one of the worst aberrations of sound financial policy is the creation of a new kind of collateral—DEBT ! It seems that in order to borrow billions and billions more of “money”, it was necessary to first take all of the real collateral in the world and turn it all into paper (securities, etc). Then, use the paper as “collateral” to borrow more “money”. Then, take this pile of …
Investment in rental houses has become prolific these days. It started with large hedge funds buying tens of thousands of empty-foreclosed-homes from the banks. They were getting these houses for around twenty cents on the dollar. After attempting to turn these properties into rental-backed securities (they just can’t control themselves) these large hedge funds decided it did not work. They were sending out their prospectus to investors with wonderful claims of seven percent annual returns …
In the minds of these Wall-Street-hustlers “nothing is really owned anyway.” If you can create enough confusion and chaos in the financial sector you can get rich.
Cash is pouring into the commercial market from overseas from investors that are desperate to get their money out of their failing economies and it’s not just multi-family. Strip Malls are the next flavor of the day, where there is no listing price necessary. “All offers due by ……” This is so similar to the lead up to the last crash in Commercial Real Estate (CRE.)
The Roman empire was a Republic, and thrived economically for over 400 years, until one day some guy named Julius Caesar decided he was now completely in charge. This was when Gold coins came on the scene, and a total dictatorship controlled all the gold and there went the 400 year economic boom.
