Posted on 12/02/2022 1:22:34 PM PST by PK1991
Edited on 12/02/2022 2:30:33 PM PST by Jim Robinson. [history]
Bloomberg
Too big to fail of course
Its de facto insolvency.
Blackrock is the roach motel of real estate investing: once you check your money in, you can’t check it out
oops, I meant Blackstone, not Blackrock LOL
They should be pounded into the dirt! Black dirt pounded with heavy Stones.
Same in the UK.
Someone is having cash flow or liquidity problems.
5.56mm
I think everybody should panic,
Real estate is not liquid.
Think of the building and loan scene in Its A Wonderful Life where all the townspeople want their money today but the cupboard is bare. Little known clause in most all deposit accounts, the bank reserves the right to limit your withdrawals. Unless of course you are a principal of FTX and you just take what you want and then say, sorry, no soup for you.
Didn’t Desantis just pull 2 billion out of this outfit?
They win you lose, mini Madoff showed us
—”the vegetable POTUS in the WH.”
A very good description.
Pretty much defacto insolvency. More a liquidity issue though. Homes and buildings have value but are not very liquid. Can takes months or years to liquidate. If everyone wants their money out of property at the same time, the values sink and the management has to liquidate the assets and/or borrow against the portfolio and pass the risk onto others. But the good new is FTX can buy the land for newly minted crypto coins.
Personally I hope that real estate does reduce it’s fabricated rise,the wealth is getting to be almost like the controlled diamond market....false.
One would think that investors in a real estate investment fund would be sophisticated enough to know that it is illiquid. They should expect slow, steady returns on investment in the form of rental payments and slow long term returns on the asset value - less costs of maintenance costs and management fees of course. Some would be more actively managed, flipping properties here and there. Others more passive and long-term thinking. Or a little bit of both. Opportunistic when you can be, patient when you need to be.
Heck I don’t have the means to throw excess cash into one of these funds but even I know that much.
These days though, not much makes sense to me.
Is it both Blackstone and Blackrock? I have seen threads on both companies. I’m fairly certain Blackstone was a spin-off of Black Rock and is a separate company for a number of years.
Thank God there’s a robust market for my Bored Ape NFTs
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