Why is Blackrock buying every single family house they can find, paying 20-50% above asking price?

Scataphagos said:
Seems logical but I don't know that we can count on that this time.

If the Fed tightens rates and credit, the markets and the economy will come crashing down. It's likely they won't do that because they don't want to be the "scapegoat" for the crash.

So then.... if they can't find a "jumping off point".... they're left with running the inflation and money-print into oblivion and bankruptcy for nearly everybody. Which, BTW, has been the historical choice. Lots of examples, sadly.
More...
Yes the Fed learned that lesson in the repo markets in 2019.
https://ig.ft.com/repo-rate/

Perhaps this is why they're increasing reverse repos, which recently have amounted to about USD500B. Maybe this is a way to test and see what happens with short-term liquidity removal.
https://www.reuters.com/article/us-usa-fed-reverse-repo-idUSKCN2DL29J
 
IMO, inflation will get out of hand when we cross the line from cost push, to demand pull. The latter happens when we see wages rising.
 
Scataphagos said:
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.)

:(
More...

Hells to the Y-E-S. I know several people that I care about that are invested in 'safe' bonds and holding USD/Euro.
Safety is OVER for that shit. 5-4-3-2-1, NOW.
 
As a bond trader for 25 years and a residential real estate investor for 25 years, I believe Blackrock is only looking at the current cap rate of 8% to 10% for decent A and AA properties. The cash flow will continue but depreciation is almost certain as rates rise.
In the long run, real estate will outperform all other asset classes as inflation rears its ugly head. People have to have a place to live but can sacrifice on clothes, food, and cars for a while.
 
Saltynuts said:
I've seen you and copperovergold express the "its already priced in" argument regarding inflation. However, my counter to that is you CANNOT price in high/chronic long-term inflation. Its impossible. Because the money doesn't exist today to bid the assets up to a value they can be bid up to in the future when the money supply is [300%] higher due to the government continuing to print money at a [25%] annual clip. Prices just will keep going up and up and up and up.

Fed will raise raise rates and engaged in QE tapering? Haven't they said they are not going to do any of that through at least the remainder of 2021? And even after that, won't they still have to buy U.S. Treasuries to fuel the large, and getting larger, U.S. deficits? Money supply will likely continue to increase at a 23%+ annual clip (probably only growing) for a looooong time IMO. I don't see how that can't lead to very high if not chronic inflation.
More...

I think the news is a pretty good indicator it's slowing down. Everything is priced in than the stupid media starts feeding you their stale garbage. Sure there's more inflation down the road, but atleast for now, I feel we're gonna get a small rally in the dollar. When your FB starts recommending you "inflation hedges", you know the trend's slowed down or is probably over.
 
Thank goodness I am older and have gone through enough cycles, with the exception of a full blown depression which we are long overdue, history repeats itself. And as traders or long term investors, great time NOW to read and learn of USA cycles of inflations and find best places to move funds and learn how to hedge.
There are reasons why most people are sinking in life and very few at the top.
 
You must log in or register to reply here.
Back
Top