It’s summer and that means vacation time. But you have if ruff. After trying to pay down debt, and working 70 hours to earn a living, there is nothing left. Well stop sniveling because you’re not alone. Rich folks have their share of troubles and you don’t hear them whining.
Just consider this. The Queen of England had to go hat in hand to Parliament asking for a salary increase. How much of a bump: about $98 million. Yes that is nearly twice last year but remember. Last year, QE2 did not get a bonus and the walls of Buckingham Palace haven’t been painted in ages.
No wonder Prince Harry wants out of the royal family. There is hardly a decent place for him to live.
Looking The Look
And then there is the other pressure on the “not so poor off”. In the Donald Trump era of appearance trumping substance, it is not enough just to be a billionaire. You have to look like one.
Here is a flash from Hermes Birkin. These are the humble people that make purses worthy of her carrying your American Express Centurion Card. A Blue Colvert Crocdile handbag is expected to be priced at $50,000 (comes with free shipping) when it goes on auction sometime soon.
So if you are Mick Jagger and your latest flavor of the month needs something to wear to Whole Foods, what are you suppose to do? You get stuck holding the bag.
We mustn’t forget that it is June, and that means private jets for trips to the town of Ascot and horseracing. The cost of security has reached intolerable heights.
Bye Bye Condo In The Sky
Things are much worst than they appear on the surface. All of a sudden there is an oversupply of ultra high priced condos in New York, the capital of foreign investment capital. If it is happening in New York can Boston and San Francisco be far behind.
For years foreign money has been flying into America. Drug money from Latin American has remade Miami’s skyline and made South Beach a favorite hangout for the cartel.
For just as many years capital from Asia has puffed up prices in Silicon Valley. Even with absolute government control over the banking system, private capital has managed to escape. You can be sure there was a price paid to someone.
New York has long been the destination point for foreign investors. How can you tell which is the tallest residential condo structure in New York? It is the one with no lights on because almost nobody lives there.
Over the past few years the number of condo sales to anonymous foreign companies reached frenzied levels. But that day is over, at least for now. A measure of the times is a foreclosure that is underway on a condo that sold as recently as 2014 for $51 million. Carrying costs on the property easily work out to well over $200,000 per month, excluding electricity, water and gas.
Nobody knows the reason for the mortgage default since the condo has an LLC owner. But the fact that for the first time in a very long time we are seeing a softening in demand opens many possible causes.
What we do know is that real estate has been the place to anonymously hold capital. Could the current oversupply simply be a temporary condition? That’s most likely the case. However, you can never rule out the possibility that the US Dollar may be loosing some of its drawing power.
Is The Dollar Loosing It’s Green
A recent article in Cryptocoins News paints a gloomy picture for the greenback. The emergence of Bitcoin, ethereum and other cryptocurrencies is giving the dollar a run for its money. The price appreciation alone of these two (not withstanding recent downside blips) makes real estate price inflation look like chopped liver. And on top of that are the two key features of liquidity and anonymity.
This is all logic and speculation until authors of the article demonstrated that over 80% of Bitcoin trades come from Asia: just something to think about.