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STORY AT-A-GLANCE
- Investors’ participation in the housing market during the pandemic may have been instrumental in driving up prices and making it harder for the average American to achieve homeownership
- Investors with large portfolios nearly doubled their share of purchases from September 2020 to September 2021, reducing the supply of available housing — particularly in lower-priced markets — and driving up prices further
- Blackstone is the largest landlord in the U.S. as well as the largest real estate company worldwide, with a portfolio worth $325 billion
- BlackRock, one of the largest asset management firms, is another mega firm buying up U.S. houses; if trends continue, some believe Wall Street investors could accomplish feudalism in 15 years
- Aladdin, which stands for Asset, Liability, Debt, and Derivative Investment Network, is BlackRock’s technology platform, which controls $21 trillion of the global economy and has access to data on the global real estate market
Buying a home — often viewed as a cornerstone of the American dream — is getting harder to afford in the U.S. The reasons why are complex, a perfect storm of rising interest rates and high housing prices have priced many people out of the market.1 But there are other factors at play, including record-low inventory2 and competition from investors, who purchase homes in cash about 75% of the time.3
An influx of investors — including Wall Street — entered the housing market during the pandemic, drawn in by low mortgage rates, easy access to loans and enticing home appreciation.4
It’s now clear that not only did investors, including bigwigs like Blackstone and iBuyers — which make instant, cash offers online — dabble in the housing market during the pandemic, but their participation may have been instrumental in driving up prices and making it harder for the average American to achieve homeownership.5
Big Investors Doubled Their Share of Home Purchases
Investors range in size from small to large — spanning the space of mom-and-pop shops renting out a couple of vacation rentals to Wall Street giants with hundreds or thousands of units. Most investor home purchases (74%) in September 2021 were made by those with portfolios of less than 100 properties,6 but the gap is closing. Mega investors significantly expanded their scope in recent months, such that they’ve had a major impact on the market.
According to Daniel McCue, a senior research associate at the Harvard Joint Center for Housing Studies, “Adding to the pressure on prices, investors moved aggressively into the single-family market over the past year, buying up moderately priced homes either to convert to rental or upgrade for resale.”7 In “The State of the Nation’s Housing 2022,” a report by the Joint Center for Housing Studies of Harvard University, it’s further noted:8
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“CoreLogic reports that the investor share of single-family homes sold in the first quarter of 2022 hit 28 percent, well above the 19 percent share a year earlier and the 16 percent share averaged in 2017–2019. Not surprisingly, investors focused on markets with rapid home price appreciation …”
However, investors with large portfolios are increasingly making their mark. They nearly doubled their share of purchases from September 2020 to September 2021, reducing the supply of available housing — particularly in lower-priced markets — and driving up prices further. According to the report:9
“Investors have moved rapidly into the single-family market since the pandemic began … Investors with large portfolios (at least 100 properties) drove much of this growth, nearly doubling their share of investor purchases from 14 percent in September 2020 to 26 percent in September 2021.
By buying up single-family homes, investors have reduced the already limited supply available to potential owner-occupants, particularly first-time and moderate-income buyers. Indeed, investors are more likely to target lower-priced properties.
In September 2021, investors bought 29 percent of the homes sold that were in the bottom third by metro area sales price, compared with 23 percent of homes sold in the top third. Investor-owned homes are typically converted from owner-occupied units to rentals or upgraded for resale at a higher price point.”
Blackstone Back in the Home-Buying Business
Blackstone, a giant private equity firm, is deeply entrenched in U.S. real estate. Blackstone is the largest landlord in the U.S. as well as the largest real estate company worldwide, with a portfolio worth $325 billion.10 In 2012, Blackstone founded Invitation Homes and spent billions buying foreclosures and distressed properties and turning them into single-family rental properties.
With about 80,000 homes in its portfolio, Invitation Homes has been criticized for evicting tenants, hiking rents, delaying repairs and charging excessive fees.11 At its peak, Blackstone was spending more than $100 million a week buying up properties.12
The company went public in 2017, raising more than $1.5 billion from its initial stock sale, but Blackstone sold its remaining shares of the company in 2019, earning about $7 billion.13,14 It re-entered the market during the pandemic, however, with a $300 million minority investment in Tricon Residential, which owns more than 30,000 single family and multifamily rental homes throughout the U.S. and Canada.15
In June 2021, Blackstone agreed to buy Home Partners of America, a company that rents single-family houses, and its more than 17,000 houses, for $6 billion.16
BlackRock Threatens Middle-Class Home Ownership
BlackRock, one of the largest asset management firms, is another mega firm buying up U.S. houses; they also control the media and Big Pharma, and have ties to Blackstone. Blackstone’s cofounder, billionaire Steve Schwarzman, said during an interview on Squawk Box that he and BlackRock founder and CEO Larry Fink started in business together.
“We put up the initial capital,” he said. BlackRock used to be called Blackstone Financial, but Fink went off on his own. Schwarzman said, “Larry and I were sitting down and he said, ‘What do you think sort of about having a family name with ‘black’ in it,’”17 and BlackRock was born.
In the first quarter of 2021, 15% of U.S. homes sold were purchased by corporate investors18 — competing with middle-class Americans for the homes. There’s really no competition, however, as the average American has virtually no chance of winning a home over an investment firm, which may pay 20% to 50% over asking price,19 in cash, sometimes scooping up entire neighborhoods at once so they can turn them into rentals.20
“Yield-chasing investors are snapping up single-family homes, competing with ordinary Americans and driving up prices,” The Wall Street Journal warned in a 2021 exposé.21 The question is: Why would institutional investors and BlackRock, which manages assets worth $5.7 trillion,22 be interested in overpaying for modest, single-family homes?
To understand the answer, you must look at BlackRock’s partners, which include the World Economic Forum (WEF),23 and their extreme political and financial clout. In a Twitter thread posted by user Culturalhusbandry, it’s noted:24,25
“Black Rock, Vanguard, and State Street control 20 trillion dollars worth of assets. Blackrock alone has a 10 billion a year surplus. That means with 5-20% down they can get mortgages on 130-170k homes every year. Or they can outright buy 30k homes per year. Just Blackrock.
… Now imagine every major institute doing this, because they are. It can be such a fast sweeping action that 30yrs may be overshooting it. They may accomplish feudalism in 15 years.”
If the average American is pushed out of the housing market, and most of the available housing is owned by investment groups and corporations, you become beholden to them as your landlord. This fulfills part of the Great Reset’s “new normal” dictum — the part where you will own nothing and be happy. This isn’t a conspiracy theory; it’s part of WEF’s 2030 agenda.26
BlackRock’s Aladdin ‘Owns Everything’
Aladdin, which stands for Asset, Liability, Debt, and Derivative Investment Network, is BlackRock’s technology platform, which controls $21 trillion of the global economy — that’s more than the $20 trillion GDP of the U.S., or the $15 trillion GDP of the E.U.27
To put this into perspective, if you were to collect every last cent from the world’s 7.6 billion people, you would amass about $5 trillion, which is considerably less than the $6.3 trillion in assets BlackRock is managing. As reported by The New Statesman:28
“The total value of assets under management by BlackRock is $6.3 trillion. But Aladdin also delivers risk analysis on the assets managed by its clients, which are valued at more than double that amount.
Overall, Aladdin has an effect on the management of around ten per cent of the world’s financial assets, or around $20 trillion. Over 25 years, it has grown into a system that is directly or indirectly responsible for more than four times the value of all the money in the world.”
This “robot” directs the actions of the U.S. Federal Reserve, nearly every major bank and Wall Street investment fund and more than 17,000 traders. It also controls half of exchange-traded funds (ETFs), 17% of the bond market, 10% of the stock market and carries out 250,000 trades daily.29
Its powerful artificial intelligence and algorithms are so instrumental that Anthony Malloy, CEO of New York Life Investors, which manages $238 billion in assets, told Forbes, “Aladdin is like oxygen. Without it we wouldn’t be able to function.”30 Even when it comes to government regulation, BlackRock is there.
The U.S. government appointed Brian Christopher Deese as the 13th director of the National Economic Council — he previously worked as the global head of sustainable investing at BlackRock. Adewale Adeyemo, a former BlackRock chief of staff, was also appointed as a top official at the Treasury Department.31 “This means BlackRock is now the treasury as well as the treasury adviser,” notes futurist and social entrepreneur Roger James Hamilton.32
Humans Are Free also explained,33 “Bloomberg calls BlackRock ‘The fourth branch of government,’ because it’s the only private agency that closely works with the central banks. BlackRock lends money to the central bank but it’s also the adviser. It also develops the software the central bank uses.”
In 2019, Blackrock expanded Aladdin’s reach even further by acquiring eFront, a private markets data firm, to gain a “whole portfolio view.”34 This put the private assets that were once a blind spot for Aladdin firmly under its thumb — including data on the global real estate market, data that BlackRock used to buy up single-family homes in the coming years.
“I’m not into conspiracy theories, but even a skeptic with eyes wide open can see the signs. We’re at a point where no one can compete without Aladdin,” Hamilton said, adding:35
“This story is far from over. Aladdin has already reached a tipping point where one robot controls more wealth than any person or country. But as Aladdin’s AI capabilities continue to grow, and with its rate of control rising by another trillion to $2 trillion in new assets every year, it looks inevitable that Wall Street’s secret weapon could end up owning everything, and we end up owning nothing.”
- 1, 3, 4, 5 Fortune June 26, 2022
- 2 CNN April 13, 2022
- 6 Yahoo! June 26, 2022
- 7 Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing 2022, June 22, 2022
- 8 The State of the Nation’s Housing 2022, Page 2
- 9 The State of the Nation’s Housing 2022, Page 12
- 10 ZeroHedge June 22, 2021
- 11, 12, 14, 15 Housing Wire September 1, 2020
- 13 Housing Wire November 22, 2019
- 16 Reuters June 22, 2021
- 17 Yahoo Finance June 22, 2017
- 18 Slate June 19, 2021
- 19 YouTube June 10, 2021
- 20, 21 The Wall Street Journal April 4, 2021
- 22, 23 World Economic Forum, BlackRock
- 24 Bitcoin.com, News June 11, 2021
- 25 Cultural Husbandry Twitter June 11, 2022
- 26 Forbes November 10, 2016
- 27 YouTube, This Robot Already Owns Everything: Blackrock Aladdin November 29, 2021, 0:20
- 28 The New Statesman April 6, 2018
- 29 YouTube, This Robot Already Owns Everything: Blackrock Aladdin November 29, 2021, 0:40
- 30 Forbes December 19, 2017
- 31 YouTube, This Robot Already Owns Everything: Blackrock Aladdin November 29, 2021, 6:58
- 32 YouTube, This Robot Already Owns Everything: Blackrock Aladdin November 29, 2021, 7:12
- 33 Humans Are Free May 5, 2021
- 34 Institutional Investor May 20, 2020
- 35 YouTube, This Robot Already Owns Everything: Blackrock Aladdin November 29, 2021, 6:45
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
Klause Schwab, Director of WEF: “You will own nothing and be happy.”
Is Blackstone a Chinese Communist Party operative? One of Hunter Biden’s buddies?
In a stable market, rising interest rates push down home prices . . . and vice versa, because buyers are qualified for mortgage loans based on monthly payments as a percentage of their monthly income. That factor does not affect corporate investors, though, so it has to be the prospect of rent subsidies providing reliable cash flow that attracts corporate buyers.
I’m no globalist shill but a few points if I may:
1) if you are a current homeowner, are you upset that the value of your home went up? Probably not, and you herald the supply-demand curves and your own brilliance in investing in your future by purchasing a home. Why then do you get upset at investors purchasing REITs?
2) if you currently own securities, are you upset when the price goes up because investors’ demand for partial ownership of the security? Most likely not. With an aura of self-congratulation, you tell your friends you wisely bought Tesla early on and have owned Amazon since IPO.
3) are there any other asset classes you would like to prevent investors for investing in? Commodities perhaps? Let us know. We need to all know the rules.
Dale Sanders:
1. Yes. I am upset the artificial inflated price on my home went up. Why? As a long term homeowner on a fixed income who carefully considered this point in my years, my Property Taxes have doubled, in 1 year.
2. Another artificially created rocket to the moon fallacy. What goes up with jet fuel comes back down when its tanks empty.
3. A corporate Robot named ‘Aladdin’ is not an investor. It too is an artificial creation. With its insatiable appetite for owning all the land on earth, at the expense of working families, once it achieves this. What then will it be fed? More human sacrifice?