Hedge Funds Are Taking Over Brooklyn

Quote from Banjo:

“I’d say by the spring, maybe 70% of the sales we were seeing were to hedge funds, investors and others taking advantage of what was happening in Brooklyn,”

http://www.nytimes.com/2013/11/20/r...l=1&adxnnlx=1385225481-sAl3UzPKrPGCj4GPDOBGwA
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And people ask me why I continue to blame Central Banks for increasing income inequality in this country. As long as the Fed is handing out free money, hedge funds will buy up all the property reducing supply and driving up prices and at the same time allowing the oligarchs in Greenwich to control the price the poor man has to pay for rent. Instead of the peasants paying the King, the middle class now has to pay the hedge funds. The kings lived in large castles surrounded by moats. The hedge fund managers live in equally large estates guarded by tall gates. Not much has changed in the last thousand years. Amazing this country continues to allow this. But hey, look at the Dow! We win! We win! Well, not exactly. Most of the stock is actually owned by those kings err hedge fund managers in CT. They win.

So what does the little guy get? Well little Timmy, you won yourself the affordable care act! That's right, the little guy can also play along. Now mommy and daddy who are 3 months behind on their mortgage because mommy can't find work and daddy who was an engineer but now works at a call center who dropped his health insurance so daddy can buy insurance for the whole family on his state's open insurance exchange whose website is not even functioning properly. But when it does, daddy will spend the last few dollars he has to pay more for his now downsized crap policy. But not to worry little Timmy. Since daddy has no money to take you the ball games since tickets cost $200 a piece driven up by corporate sales and you know, those richer folks running hedge funds driven by cheap money, for fun, daddy will take you on a nice drive out in the country on Sunday and show you all those big pretty 18k sq foot homes that the kings live in, err I mean hedge fund managers. And round and round we go. QE forever and ever and ever and ever!
 
Quote from Maverick74:

And people ask me why I continue to blame Central Banks for increasing income inequality in this country. As long as the Fed is handing out free money, hedge funds will buy up all the property reducing supply and driving up prices and at the same time allowing the oligarchs in Greenwich to control the price the poor man has to pay for rent. Instead of the peasants paying the King, the middle class now has to pay the hedge funds. The kings lived in large castles surrounded by moats. The hedge fund managers live in equally large estates guarded by tall gates. Not much has changed in the last thousand years. Amazing this country continues to allow this. But hey, look at the Dow! We win! We win! Well, not exactly. Most of the stock is actually owned by those kings err hedge fund managers in CT. They win.

So what does the little guy get? Well little Timmy, you won yourself the affordable care act! That's right, the little guy can also play along. Now mommy and daddy who are 3 months behind on their mortgage because mommy can't find work and daddy who was an engineer but now works at a call center who dropped his health insurance so daddy can buy insurance for the whole family on his state's open insurance exchange whose website is not even functioning properly. But when it does, daddy will spend the last few dollars he has to pay more for his now downsized crap policy. But not to worry little Timmy. Since daddy has no money to take you the ball games since tickets cost $200 a piece driven up by corporate sales and you know, those richer folks running hedge funds driven by cheap money, for fun, daddy will take you on a nice drive out in the country on Sunday and show you all those big pretty 18k sq foot homes that the kings live in, err I mean hedge fund managers. And round and round we go. QE forever and ever and ever and ever!
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It's good to see you come around to the reality of things.

Reading your posts a few years ago, I didn't get the impression that this was your worldview.
 
Quote from denner:

It's good to see you come around to the reality of things.

Reading your posts a few years ago, I didn't get the impression that this was your worldview.
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How did you get that impression? I've been railing on central banks since 2005. LOL. Honestly, if anything, I've tried to tone it down the last couple of years. My worldview really has not changed a lot since....like high school. And that was a looooooong time ago. Unless you thought I was like pro-hedge fund or something.
 
The hedge funds are buying with the intent of selling to the greater fool...

Who's the greater fool in this scenario???

How long can they hold out until the fool shows up?
 
Quote from blah12345678:

The hedge funds are buying with the intent of selling to the greater fool...

Who's the greater fool in this scenario???

How long can they hold out until the fool shows up?
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No they want to hold long term. They want use these a replacements for the CDS's that use to pay them 5% to 6% a year. The difference is they go from being short convexity to long. Much better deal. Think about what they are doing mathematically. If we get a spike in inflation, they are essential long bonds that will rise in value vs getting crushed. And the beauty is thanks to the Fed they have no financing cost.
 
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