Quote:
Originally Posted by LWJ
Shaun just called out "two economies." Hmm. This rings true. And, Cabmandone sales are all pitched towards higher income / institutional buyers.
It could well be that poor folks are having a small recession while wealthy folks just are having another day. I will confess that my circle is mostly made up of wealthier people - but I buy and sell from far more normal folks.
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One overlap, at the expense of the consumer, is private equity firms buying literally everything. The formula is simple: business (veterinarian, carpet installer, painter...) starts in 1950s-1980s and creates generational wealth along with a great reputation in the community. Private Equity sees a steady cash flow machine and they jack up prices. A LOT! And/or their standard load up on debt and then sell assets and let it die after they've cashed in on the assets. So many places have real estate as their primary asset. Very tasty.
Of course PE buying up homes for cash so they are interest rate independent is also driving up the price of housing.
Net net is Wall Street is taking advantage of and/or crushing Main Street, consumers paying the price for unbridled greed.