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 debt, and use it as collateral to borrow more “money”, and so on and so on and so on.
This has created an “ownership” problem. In other words, this debt (paper) has been re-hypothecated over and over again so many times, no-one seems to own anything. This clouds the criminal activity and fraud intentionally to a point where nothing seems to be owned by anyone. The entire business model of these banks currently is to make billions in fees, commissions, and points on the constant churning of these mountains of debt.
Will this insanity go on forever? Absolutely not. This fraud/Ponzi scheme will collapse under its sheer weight of debt. When it does collapse, the underlying true collateral (real estate, commodities. and other tangible assets) will still be here. Whoever has title to these properties at that time will be sitting pretty well.
I encourage all who can see through this current insanity to get involved in buying commercial real estate now. At the end of the day, the buildings will still be standing, and they will be producing income for whoever owns them. These “real” assets will create the next generation of the richest individuals in the future, and all these paper pushers will again go down in flames, as they have many times before in history.
Feel free to contact Bill Witter at Equity Pro Realty, Inc. for your commercial real estate needs. Over $500,000,000 in transactions later, we are alive with enthusiasm about the future.
Equity Pro Realty, Inc.