The Cantillon Effect is Strangling America.
How many houses does Stephen Schwarzman need?
“I’ve always told young people, in terms of parenting, forget ‘quality time,’ it’s quantity time. All time with your children is quality time…”
Invitation Homes Net Seller of SF Properties for Second Straight Quarter Great news, right?
Well, they still own 86,580 single-family homes, after “net selling” 103 homes in Q1, a rounding error.
That’s 86,580 homes your kids can’t buy!
Blackstone’s Invitation Homes raises $1.54 billion in IPO
The New York-based buyout firm founded Invitation Homes in 2012, about five years after the housing market began crashing and it started buying foreclosed homes in bulk. It has spent about $10 billion on the 48,000-home portfolio, representing one of Blackstone’s biggest bets.
How can normal people compete with this?
Remember this great article from March 2020?
Before 2010, institutional landlords didn’t exist in the single-family-rental market; now there are 25 to 30 of them, according to Amherst Capital, a real estate investment firm.
Investors warn of First Republic aftershocks at gloomy Milken gathering Oh, is the crowd at the Milken gathering gloomy? So sad.
“It’s time for the markets to fully digest how constrained central banks are going to be relative to the last 30, 40 years, when every time there was a tiny murmur of a problem, you could just lower rates [and] print money.”
I’m so old I can remember this:
Blackstone real estate trust limits withdrawals for sixth straight month
“We remain confident that BREIT’s portfolio will continue to be well-positioned to deliver strong long-term performance and consistent distributions, while providing investors access to the diversification benefits of high-quality real estate as a core portfolio holding”
JPMorgan Chase, Officially the Riskiest Bank in the U.S., Is Allowed by Federal Regulators to Buy First Republic Bank Strangely, the journalists at WallStreetOnParade are never allowed at Fed press conferences.
At the time of JPMorgan Chase’s purchase of Washington Mutual in 2008 – WaMu was the largest bank failure in U.S. history. JPMorgan Chase is now being allowed to purchase First Republic Bank, the second largest bank failure in U.S. history. This flies in the face of President Biden’s Executive Order of July 9 2021, where he promised that his administration would “guard against excessive market power” and enforce antitrust laws.
First Republic’s Jumbo Mortgages Brought On the Bank’s Failure a unique strategy to loan wealthy individuals extraordinary sums of money blew up in spectacular fashion.
This is from the First Republic website: A Key Innovation – The Jumbo Mortgage
Long-Term Loans: What to Know About a 96-Month Car Loan
Airbnb Earnings and the Current State of the Short-Term Rental Market
“Has AirBnB destroyed anyone else’s city?” Read the comments.
Mortgage balances shown on consumer credit reports increased by $254 billion during the fourth quarter of 2022 and stood at $11.92 trillion at the end of December, marking a nearly $1 trillion increase in mortgage balances during 2022. Balances on home equity lines of credit (HELOC) increased by $14 billion, the third consecutive quarterly increase and the largest increase seen in more than a decade; the outstanding HELOC balance stands at $336 billion
I continue to think the main problem is with home prices, not rates.
Check this out - the number of subscribers to the “RealEstateInvesting” subreddit:
Every single person I know with the money to do it poured into real-estate because they couldn't get a 6% CD anymore.
UK pension funds have moved into bonds in a big way in recent years, and now their 10-year yields 3.83% with official CPI at 10.1%. Good luck with that.
Commercial Property Is Sputtering. Just Ask the ‘Real Estate King’ of Sweden. In under a decade, the former small-town mayor built a Nordic real-estate empire on a wave of low-cost loans.
This is a version of the Treasury 10-year minus the 3-month yield, using a “discount basis” yield for the 3-month, which seems to be 0-20 basis points lower than the actual 3-month yield. Again, we’re at inversion levels only seen twice in 70 years: 1973 and the late 1970’s, early 1980’s.
Epstein’s Private Calendar Reveals Prominent Names, Including CIA Chief, Goldman’s Top Lawyer
William Burns, director of the Central Intelligence Agency since 2021, had three meetings scheduled with Epstein in 2014, when he was deputy secretary of state, the documents show. They first met in Washington and then Mr. Burns visited Epstein’s townhouse in Manhattan.
Kathryn Ruemmler, a White House counsel under President Barack Obama, had dozens of meetings with Epstein in the years after her White House service and before she became a top lawyer at Goldman Sachs Group Inc. in 2020. He also planned for her to join a 2015 trip to Paris and a 2017 visit to Epstein’s private island in the Caribbean.
Leon Botstein, the president of Bard College, invited Epstein, who brought a group of young female guests, to the campus. Noam Chomsky, a professor, author and political activist, was scheduled to fly with Epstein to have dinner at Epstein’s Manhattan townhouse in 2015.
None of their names appear in Epstein’s now-public “black book” of contacts or in the public flight logs of passengers who traveled on his private jet. The documents show that Epstein arranged multiple meetings with each of them after he had served jail time in 2008 for a sex crime involving a teenage girl and was registered as a sex offender.
Chris Hedges: The Enemy From Within “The war industry, a state within a state, disembowels the nation, stumbles from one military fiasco to the next, strips us of civil liberties and pushes us towards suicidal wars with Russia and China.”
That comment from Puerto Rico on the Airbnb thread is absolutely heartbreaking....this is all so egregious. As soon as I have some spare time I'm going to write a book of short stories - my life in Fed policy - that starts with my grandfather losing his farm and my parents going into foreclosure.....an uplifting, feel-good story ;). But, I do have hope we can write a good ending.
I've enjoyed reading Wall Street on Parade after discovering them from your substack. However, I was surprised to see articles encouraging regulators to ban the short selling of regional banks. I don't think that helped in the prior crisis.