Loading ...Just yesterday talking to. A friend owns three industrial buildings. One for trucking business, two he rents out. One tenant is hounding him to sell it to the tenant.
According to the $100 per square foot size, he says its worth about $750k. The tenant offered him $one million dollars plus $200k under the table.
Now what does that tell you?? People are emptying bank accounts and dumping unreported hidden cash into into real estate as if it was Gold bullion or diamonds, traditional inflation hedges.
Another thing I heard, older people with money are buying homes cash for their kids and grand kids. (Posters any of you?) The last time I saw a situation like this was Silver in the mid to late 1970s.
Millions of small business owners plus others, were converting their “play money” into Silver and Gold. Fed Head Volker raised rates to 21% on the prime lending rate and crashed that silver like a penny stock.
All that excess money got evaporated during the following year or two at the most. Like the Feds big sponge. They sopped up a big bunch of money supply, so they can print some more.
It seems to be their MO. Unwittingly or not, it happens often. With every various market crash. I’ll betcha Bit Coin evaporated some. The summer 2008 too, the ‘87 crash too. And their classic one was 1929.
TPTB have to get more money into the hands of the “beginners” that have balls and lots of confidence. The 18 to 25 year olds out of high school. I was one of them. I bought a big old wooden cabin boat.
Older smarter people would NEVER ever buy a big wooden boat these days. It’s hard to sell a lot of things without dummy’s with money. 🙂
When I was a kid out of high school, the minimum wage was very generous. $1.40/hr, wheather you flipped burgers or were a line man for the electric company.
My friend started at $1.40 as a line man, I got $2.40/hr in a defense plant to start. With over time I was swimming in money. One year after starting I bought a new ‘63 Pontiac LeMans sp coupe, black on black, big engine etc.
All the kids I knew were buying new cars with 10% down and three year loans. Five of us from the same high school bought new 1963 LeMans’.
All those GTOs 442s, Z28s Corvetts etc were purchased by kids. They worked in Dellies Chinese Restaurants machine shops etc. Some bought and sold things on the side. In the Buy Lines Press.
When TPTB allowed the min wage to erode, and started off shoring businesses it was the beginning of the end of prosperity here. And now they are scrambling to bring it back. Do they have memory problems?
Its simple what they have to do, but aren’t doing it.
Recession coming, gotta go.