Jack Holland's  Instablog

Jack Holland
Send Message
Education: BA in International Relations, Masters of Public Accountancy Experience: Industrial Manufacturing, Oil & Gas Accounting, Educator, Writer Investment Experience: 35 Years
My book:
Wisdom Based Economics
  • Blackstone Group & CNBC Market Barkers Lay The Foundations For The Next Housing Bubble 0 comments
    Dec 16, 2013 6:37 PM | about stocks: BX, BXMT

    Snake Oil RealtorBlackstone Group and CNBC are living proof that Wall Street Shenanigans never cease. Wall Street Mechanics over at Blackstone Group are are now working overtime to create the next BIG BUBBLE and this one will be in the Single Home Rental Market. And the CNBC Snake Oil Salesmen are doing what they do best-sell the Snake Oil for them.

    Click here to read CNBC's article laying out Blackstone's Rental Market Play proposition and then come back to The Last American Newspaper and let ole Jack clue you in to what is really going on. CNBC's Diana Olick barks like a lapdog on their behalf. Woof!

    Also watch the video of the slick that was on CNBC this morning-the smooth talking Tom Barrack of Colony Capital. You can read more about Mr. Barrack here.

    Colony's Strategy speaks for itself: EXPLOITATION

    Strategy (From Colony's Website) Colony Capital's strategy is guided by an investment philosophy based on three key principles:

    Cautious Contrarianism: during downturns or secular changes, investing in out-of-favor sectors or markets to exploit misalignments

    Exploitation of Inefficiencies: capitalizing on information advantages to identify micro-market imbalances and secure investments on favorable terms

    Value-added Management to Optimal Exits: creating capital appreciation opportunities through repositioning, restructuring, development, and intensive management

    Now for a reality check. For the past five years Blackstone and other astute capitalists have been in bed with the Federal Reserve and cherry picking high dollar homes in highly depressed markets such as Phoenix, Las Vegas, Miami, and Orange County California.

    That's right folks, this is what we mean when we say the largest ever transfer of wealth is now taking place before your very eyes in these good ole United States of America.

    You see, during recessions and especially during depressions, the rich folk with cash pick up all the real estate assets for nickels on the dollar. During The Great Depression of the 20th Century, they bought up millions of acres of farm land, and now that we are smack dab in the middle of The Great Depression of the 21st Century, they have been buying up all the mega mansions that were built during the housing bubble run-up from 2000-2007. They cut special deals with the Fed in many cases to buy portfolios of the so-called Toxic Waste real estate on the Fed's balance sheets along with direct purchases through newly created real estate trusts. This buying is what is behind the remarkable recovery of home prices in Phoenix and elsewhere as investors rushed in to get in on the action. Very few if any of these homes have been purchased by families.

    Now, Blackstone Group, Colony Capital, LLC and others like them want to dump these family-less properties on unsuspecting suckers (Would Real Estate Investors with no capital of their own) through their newly created loan pools.

    We can align our assertions with Colony's so-called strategy:

    • The contrarian part of the equation means buying depressed real estate
    • The exploitation part of the strategy means pawning this stuff off to unsuspecting and naive investors
    • The optimal exits part of the strategy means collecting the bucks from those left holding the bag

    Guess what happens next?

    It is my opinion that the economy will simply not support the rents the investors seek and these unsuspecting investors will be left holding the bag.

    Mark my words America-you heard it here first. DO NOT PARTAKE IN THIS SCAM!

    Stocks: BX, BXMT
Back To Jack Holland's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.