The Federal Reserve's low interest rate policy for much of my adult life has led to yield farming in every nook and cranny in the economy/life. Every need a person must have has been cornered, controlled, made scarce, and is being farmed for cash flow by wealthy investors.
Case-Schiller index up 20% between 3/2021 and 3/2022. Up 17% annually the past two years. Oh, and between 3/2012 and 3/2020 the annual increase in the CS Index was 5.8%. All the while the FED was demonstrably concerned that inflation was running below target. Yea ,The FED is lying and they don't care. They even publish the lie on their website.
The multi-family market in these low interest rate lending times has become a race to put more of that cheap $$ into real assets with a specific yield. That $$ has driven prices up astronomically over the past 10 years. People who manage apartments know that as rents go up, the number of people who can qualify drops, under the old standard of 1/3 of monthly pay going to rent. It's much closer to 50% now & as inflation increases people are just being squeezed more & more. All of this to create the yield that pension funds & others want/need. Once again, the retired generation is feeding off of the current employees. But there's more to it than that.
In addition, some of the buyers are going back to interest only loans with minimal amount down to buy large complexes. Keep an eye on evictions for non-payment of rent. They were stopped because of Covid policy, but might come back.
Hard to avoid the conclusion that the average American earring say $60K w/ a savings account of say $60K is NOT down shit a creek called Niagara Falls on the way to bankruptcy. Just asking because I’m convinced many around the world don’t recognize the SHIT SHOW these poor souls are about to experience in full force.
Speaking about housing and real estate in Rothschilds' "green" sharing circular economy from their recent "Reinventing Globalization" weekly edition...
The Federal Reserve's low interest rate policy for much of my adult life has led to yield farming in every nook and cranny in the economy/life. Every need a person must have has been cornered, controlled, made scarce, and is being farmed for cash flow by wealthy investors.
Case-Schiller index up 20% between 3/2021 and 3/2022. Up 17% annually the past two years. Oh, and between 3/2012 and 3/2020 the annual increase in the CS Index was 5.8%. All the while the FED was demonstrably concerned that inflation was running below target. Yea ,The FED is lying and they don't care. They even publish the lie on their website.
https://fred.stlouisfed.org/series/CSUSHPISA
The multi-family market in these low interest rate lending times has become a race to put more of that cheap $$ into real assets with a specific yield. That $$ has driven prices up astronomically over the past 10 years. People who manage apartments know that as rents go up, the number of people who can qualify drops, under the old standard of 1/3 of monthly pay going to rent. It's much closer to 50% now & as inflation increases people are just being squeezed more & more. All of this to create the yield that pension funds & others want/need. Once again, the retired generation is feeding off of the current employees. But there's more to it than that.
In addition, some of the buyers are going back to interest only loans with minimal amount down to buy large complexes. Keep an eye on evictions for non-payment of rent. They were stopped because of Covid policy, but might come back.
Hard to avoid the conclusion that the average American earring say $60K w/ a savings account of say $60K is NOT down shit a creek called Niagara Falls on the way to bankruptcy. Just asking because I’m convinced many around the world don’t recognize the SHIT SHOW these poor souls are about to experience in full force.
Rudy.. there was a promoted tweet today, group photo of presidents from Clinton to to Biden, miss ya bro..
Just excellent work!
Spot on as always.
Can't help me, can't refute the factual statements issued or can't cease politically biased comments? 🤔
Your use of the Fascist label is misplaced. The Fascists in America are the MAGA supporters of the wannabe dictator, #45.
Speaking about housing and real estate in Rothschilds' "green" sharing circular economy from their recent "Reinventing Globalization" weekly edition...
https://www.economist.com/leaders/2022/06/16/the-property-industry-has-a-huge-carbon-footprint-heres-how-to-reduce-it