A very dangerous trend has been discovered as of late: hedge funds are buying up American housing. The Wall Street Journal, Federalist, and ZeroHedge have all reported on the problem, but the most succinct and useful depiction of what’s happening is this Twitter thread (you’ll want to read the whole thing and the articles in it. the info is important):
The basic story, for those that didn’t have time to read the entire thread, is this: hedge funds and big banks are buying up the US housing supply. Using cheap money from the Federal Reserve and investment dollars from their wealthy clients, they’re snapping up everything on the market. Entire neighborhood developments have been bought, houses are being instantly sold for 50% above the asking price, big banks like Lloyd’s are getting in on the action, throwing yet more greenback fuel into the raging housing fire.
Thanks to that, now 1 in 5 homes sold are bought by landlords in the top real estate markets and home ownership is permanently more expensive. BlackRock alone could snap up over 100k homes a year, just imagine the pressure on the market as more and more hedge funds and banks join in the buying spree…
And, because there are few other places to turn to for yield in such a loose monetary environment, there’s no indication this will stop; the funds will keep buying up every house on the market, especially in areas where there will be renters.
While potentially lucrative for the hedge funds and banks, this trend is a disaster for the American middle class.
For one, the renting lifestyle is not one of freedom. It is one of slavery to passion and a landlord, a life of tossing money down the drain rather than building equity and saving money. Most Americans recognize that, hence why homeownership is so popular in the US. But if there are no houses on the market, if the greedy Wall Street goons have bought them all up, more and more Americans will be forced to remain renters. Rather than raising their children in a house they own, they’ll have to live in an apartment or rented house, moving at the whim of a landlord. That’s not the American dream, it’s a nightmare for the average middle-class American.
The other, related problem is that hedge funds buying up houses destroys the concept of owned space. It’s good to own something, to be surrounded by what is yours. It’s healthier and generally leads to a happier life to own a house and raise your kids in your house, surrounded by your white picket fence. It’s what appeals to our basic instincts and satisfies the human urge for property.
Being forced to rent does not a happy man make. To toil day in and day out, sending off a check not to pay your mortgage and own a home, but to line a landlord’s pocket is not a recipe for happiness. Americans want housing because it makes them happy (in the satisfaction-based sense of the word).
So, logically, if they can’t buy a house, there will be unrest. If the oligarchs continue buying up everything on the housing market for far above market value, ensuring that the average, middle-class American has to rent rather than own, that will become problematic.
As the thread says, “The Great Reset is real. It is happening. This will be the greatest transfer of wealth, and greatest consolidation of power in the history of mankind. If they get away with it revolution will be the only cure. It will be awful. Wake up. Get active. Stop this now!! This is warfare. Make no doubt about it. Lloyds bank in London is doing it, as is every great financial institute across the world. This must be stopped. Its a greater threat than the slow creep of Communism, BLM or anything else you can think of COMBINED. It is a death stroke.”
That’s far more correct than most would like to believe. Commies, BLM thugs, and Antifa are huge threats to our continued freedom and prosperity. But the greatest threat of all is the oligarchic “Great Reset” crowd. By their own admission, they don’t want you to own anything. They hate the idea of property ownership for commoners, leading as it does to individuality and freedom, so they’re coming after it. The hedge funds and banks are waging a war on your ability to own a home. Fight them.
By: Gen Z Conservative