If You Sell a House These Days, the Buyer Might Be a Pension Fund Yield-chasing investors are snapping up single-family homes, competing with ordinary Americans and driving up prices https://www.wsj.com/articles/if-you...the-buyer-might-be-a-pension-fund-11617544801
Blackrock has a history of buying into RE when prices are low, then dumping when prices are high. DAMN... I hope they are not right this time. HUGE inflation ahead if their play is correct.
The "average American" doesn''t understand the ramifications of run-away inflation. (Stock market soars... home prices soar... and everything turns to SHIT because of a currency debased into garbage! Heaven help us all.)
Because we allowed properties to be toys of speculation instead of strictly limiting residential housing ONLY to natural persons and one per individual adult with the obligation to inhabit it. The middle class was sold out to corporations. And now the middle class is both financially and morally bankrupt
Further to this, I would also like to add that I do fully believe in free market capitalism. The last thing I want is for the governments to come in and make rule after rule as if they are helping things, because they in fact make the situation much worse. So this would mean that interest rates were allowed to be set by the market. This would have insured that housing prices didn't get out of line. Furthermore, governments shouldn't be buying up mortgages, and this would mean the lender had to ensure the mortgage they were writing was sound and the buyer was verified. Just these two simple steps would have meant that people were actually buying houses to live in. But leave it up to the government to make it sound like their policies are helping people, when we can clearly see right now that its in fact just the opposite.
So, what if there was no rules, no rule of law, no Sherriff, no police, no law enforcement, no regulations. You would have been either poisoned by polluted water, succumbed to severe food poisoning, been shot by a goon in your own bedroom, or pick from any of the other thousands of calamities that will occur when you leave out any rules and laws. You can't have it both ways. Either we are a society that sets up sensical regulations and rules, or we don't. Either way, we need to accept the consequences. The problem today is NOT rules and laws or even government. The number one issue is CORRUPTION. We surely dont use that term because it sounds so horrible, we just call it lobbyism, networking, relationship building, donations, ... that government officials and pretty much anyone today can be bought off with money and influenced. That is the real problem. In societies where there is much less of the above you can see that society is much more balanced and that a larger share of the population in the middle class does relatively well. Scandinavia, Japan, Germany, Switzerland. But oh hell, North Americans should never look at the old continent or Asia to learn, nothing to be learned there. After all the Germans are Nazis and the Japanese evil occupiers.
I think that the inflation has already happened. Most importantly, it's all over the news for the unwashed masses--which usually means that the news is already stale. - The markets have set all kinds of new highs - Property values are up like 40% - Gold has increased from about $1400/oz to $1900/oz - Commodity prices are through the roof - Food prices have all gone up The Fed will also work to step on inflation through raising rates and QE tapering. I believe they were aiming for a weaker dollar and higher inflation all along.