Relative to inflation whilst wages have stagnated below the inflation line mortgage rates have also claimed significantly recent months to 6.7 percent pushing homeownership further into the realm of fantasy and if that’s not bad enough people who don’t own homes are being squeezed for every last penny by skyrocketing rents rents that
Are expected to go up by over 8 this year on average and it’s even worse in the big cities that’s why in San Francisco you can now rent a bed in a dorm room for the low price of one thousand two hundred dollars a month not
To Flat not even a room just a bed that’s why you can rent a cupboard under the stairs for literally 500 quid a month in London add in all the other pressures of the cost of living crisis and you get a recipe for disaster but this isn’t just a product of historical
Trends and generational economic pressures the problem has been made measurably worse by A small collection of companies a collection of companies you may never have heard of companies like Vanguard Blackstone the UBS group and BlackRock by buying up 60 billion dollars worth of the housing market they’ve brought the entire system to the
Brink of collapse and here’s exactly how they did it you see right now Wall Street is getting deep into single-family homes companies like Vanguard and BlackRock oversee trillions of dollars on behalf of their clients putting it wherever they think will make the most money and one of
These is the housing market using their immense purchasing power these trillion dollar companies have the ability to price out regular people with ease sometimes offering 50 over the asking price just hours after the houses are being listed in 2022 nearly a quarter of the homes put on the markets weren’t
Bought by the families that needed them but instead by institutional investors that’s nearly dubbed with a 12 percent it was last year however 15 years ago this wasn’t happening at all with very few exceptions Wall Street stayed entirely separate from these homes instead they bet their billions of mortgage bonds Financial products that
Gave returns based on regular people paying their mortgages so then what changed it what happened well it all started when the bank’s beloved mortgage bonds dropped sharply in value after housing market crash putting the whole world into a financial crisis you see because the banks had leveraged so much
Money on housing going up it was catastrophic when they didn’t some of the world’s biggest banks like restaurants and Lehman Brothers went straight into the ground with government bailouts eventually costing taxpayers billions and This Disaster sent rip was throughout the entire global economy leading to one of the biggest economic
Crashes in modern history it was the worst day on Wall Street since the crash of 1987. from the financial capital of the world the opening bell is going to ring in five seconds and to be honest with you we wish it wouldn’t Nemo hundreds of thousands of families lost their homes
In Carnage over the next few years as housing prices continue to fall but Wall Street who almost entirely to blame for the crisis saw an opportunity one company that made their name from The Crisis was BlackRock you see BlackRock was hired by the US government to oversee massive amounts of money and
Assets that were left behind by the crisis using this money in the connections they brought with them blackbrook became a multi-trillion Dollar Giant other companies went down a different path instead of putting money into mortgage bonds and profiting from the housing market that way they could make a fortune by buying the houses
Outrights after all the massive amount of foreclosures meant that tons of homes were being so cheap and there still wasn’t enough demand more houses being bought would give a stagnant housing market the booster needed so the government stepped in and offered these institutional investors a way to fill
The Gap giving them almost exclusive access to hundreds of thousands of foreclosed homes some of these were sold for as little as 50 or 60 thousand dollars but most of it around the hundred thousand dollar to 150 000 range and years later this would prove to be a catastrophic mistake
Lots of the first homes that were under the hammer were dilapidated and needed expensive Renovations before people could feasibly live in them the idea was that companies that brought them would get them up to spec and Lease them to families in need over time their families could put more money into
Buying back the home eventually leading to home ownership however the floor in the plan was trusting that all the Wall Street investors weren’t going to abuse the system like they did just a few years before and once the floodgates were opened billions of more Street money went towards buying these
Foreclosed homes and So within a period of six years 36 billion dollars of Wall Street money went into buying over 200 000 foreclosed homes immediately a new financial industry sprung up overnight thousands of companies were created to take advantage of the Gold Rush buying out these cheap houses thousands at a
Time the largest was a company called Invitation Homes who owned over 80 000 single-family homes at their height eventually being incorporated into Blackstone an investment giant with nearly a trillion dollars of assets under their control but what was there to be gained well whilst the tenants covered the actual mortgage costs these
Wall Street companies made money on the actual value of the house just a few short years later and a bounce back in house prices made these already discounted Investments incredibly profitable what’s more the homes could be used as Equity to secure loans letting these companies gain Millions
More to invest in whatever they wanted this would often end up being more single-family homes unsurprisingly however one problem was immediately apparent to anyone who ended up renting these homes these massive Financial companies were awful landlords the days of an understanding and beneficial relationship between two local people
Were gone instead the victims of the crash were often left paying rent on houses they used to own to a mishmash of show companies and firms that were located hundreds of thousands of miles away then when they bought the homes the bare minimum in repair and renovation
Cost was paid as long as they were presented with the first viewing it really didn’t matter what the long-term problems were although a few years later and the returns were drying up as the market stabilized and this meant that the companies who now owned the houses
Needed to cut their costs in other ways and so this would involve firing some of the support staff increasing rents by predatory amounts and pushing more responsibilities onto renters things that used to be the landlord’s responsibility that has and keep in the house of Liverpool was suddenly added to
New contracts if the renters didn’t sign then they were offering evicted and the bottom line is that this was a huge shift of capital from regular working people to Wall Street Millionaires and billionaires and I was only just getting started while these problems have continued to this day the real value
From single-family homes comes from the value as Financial assets one way which the Wall Street investors can make buckets of money was by using the homes to interfere with the housing markets not on a global level at least not yet instead firms made sure that when they
Bought houses in bulk they were all in the same place this way single entities could gain massive influence on the housing markets in any given area allowing them to easy jack up renting costs then a few years later they could sell the houses at an inflated price and
Pocket the difference some cities were hit particularly hard in August 2012 investors boards nearly 40 percent of all the houses on sale in Phoenix which inevitably meant that house prices went up by 34 a few months later pricing out all the regular people who would have bought the houses whilst creating more
Crooked and exploitive rentals and unfortunately the story hasn’t changed much today the only difference is the scale on the they aren’t foreclosed properties anymore now worship has moved into the General market and we’ve already mentioned Blackstone but they’re just one of the Premier firms involved in this Grim business a large part of
Their dollars and managed assets is tied up in housing and single-family homes in 2021 they signed a six billion deal to acquire a company called home partners of America which owns over 17 000 homes however the largest companies still dealing in single-family homes is Invitation Homes who as I mentioned earn
Over 80 000 homes and then when you follow this money you start to look into who actually owns these companies well it turns out that Vanguard and BlackRock have the biggest ownership stakes in these companies in fact BlackRock even bought a further 7.3 million dollars
Worth of shares as recent as the end of 2022. this may be surprising considering blackwork has made a specific announcement that they don’t own single-family homes and aren’t actually involved in that business at all and yet they still own one of the largest shares in a company that does own over 80 000
Homes they are backing these massive companies buying up the homes and what’s even stranger is the sheer amount of different news articles setting out to absolve BlackRock specifically one Vox article titled Wall Street isn’t to blame for the housing market chaos goes into great detail on how BlackRock are
Just completely innocent all while ignoring their public investments into the industry they’re the fuel under the fire instead they blame local governments and regular homeowners for this crisis the Atlantic also ran an article saying generally the same thing giving it the subtle title BlackRock is not ruining the U.S housing market and
There’s so many more all pushing the same message that it’s your neighbors that are to blame not the trillion dollar company Infamous for corrupting the market and then the pitcher becomes even clearer when you find out who funds and owns these media companies the largest shareholder inbox is NBC
Universal which are themselves owned by Comcast and the two largest shareholders are Comcast well Vanguard and BlackRock their combined shares and Comcast are worth around 25 billion dollars the Atlantic on the other hand is published by a company called Atlantic media which is mostly owned by Lauren Powell jobs
The winner of Steve Jobs now she’s one of the richest billionaires in the world and even worked investment Banks early on in her career and so it’s really not hard to guess where her allegiances lie and why so many Atlantic articles rush to Black Brook’s defense because they
Can’t have the masses in public waking up to the fact that their entire housing market is being bought out from under them they can’t let the public know that these massive trillion dollar Wall Street companies are the reason that you will never afford a home as this could very potentially hurt their corporate
Overloads profit margins unfortunately though buying out people’s homes is just a small part of blackrock’s unimaginably huge portfolio of Investments in 2022 nearly a quarter of the homes put in the markets were imported by families that needed them and instead by institutional investors that’s nearly
Double the 12 it was last year and all of this turmoil co-listed with news that terrified markets one of the most advanced mathematical Waters in the world now predicts a 98 chance of recession of course with this announcement nearly every major stock went down bringing the s p 500’s losses
To around 3 for that month and around 23 from their Peak leaving isil asking wait I’m Diversified why is my portfolio still getting wiped out because according to the biggest fans in the world we’re not Diversified in the right way see Goldman Sachs just released a shocking report saying the classic stock
Bond strategy won’t be enough to keep investors it floats as it’s already lost an average 25 last year as a result Goldman says the ideal allocation for stocks are strung from 60 to around 45. so what do they recommend you do with that difference in order to establish
Your stolen returns invest in real assets I got Goldman says it can potential purchasing power even in times like these and data shows that the last time inflation was this High Contemporary Arts appreciated more than even real estate at an average of 20 per year and so you’re thinking that’s great
But how do I invest in arts well with Masterworks it’s a unique platform that lets you invest in contemporary art by Legends like Picasso and bansky but just for a fraction of the full price so when they started painting you’re invested in UCS share the potential profits so far
Masterworks has had 11 exes the last three returning 10 13 and 35 net to investors including thousands of million subscribers as a result Masterworks offerings have sold out in under an hour and there is a wait list but you can skip it by clicking the link in the description below
BlackRock manages trillions in assets for their clients which are mostly other Wall Street Banks and Pension funds with these trillions BlackRock Vanguard and others have brought a large chunk of the world’s economy owning huge shares in apple Facebook Nike General Electric Fox Disney Microsoft Paramount IBM Tesla and
Google and the list just goes on and on and on BlackRock and Vanguard have a stake in all levels of society and regardless of all the other problems that comes with this massive amount of control Studies have shown that competing companies having a shared ownership is toxic to their industry and
The inevitable conclusion that comes with it results in higher prices whilst quality and quantity of goods and services fools articles defending these practices often point to the fact that BlackRock is only overseeing other people’s money and that it’s their clients that earn all of this wealth but
This is a very clever way of misdirecting valid criticism which has made all too clear when you look at where blackrock’s 8.5 trillion dollars under management comes from the vast majority of blackrock’s assets come from investments from other massive Wall Street Financial companies 72 of their assets are managed on behalf of other
Institutions and insurance companies claim another 20 leaving just eight percent of the assets being earned by companies in other Industries and an even smaller proportion of this eight percent comes from regular people and small businesses I mean it’s not an over exaggeration to say that BlackRock is Wall Street so even though blackbook
Says it’s their clients which earn the assets their clients are nearly always just other massive Banks or companies and by putting their money in Black Oak’s hands they place this into the care of a loyal and trustworthy representative as they know BlackRock will act in their interests because
Blackhawk survival is dependent on their money but why is Blackrock in such a powerful position in Wall Street why are they able to have so much leverage over the world’s economy well Aladdin is the Ace of Blackhawks leave and it’s what separates them from the competition now Aladdin is a computer software first
Created in 1998. it was a primitive program designed to predict the future of the stock markets and what investments are most likely to be profitable but after 25 years of tinkering improvements and technological progress it’s turned into an absolute monster it represents the states of Art and Ai and algorithmic technology and by
Studying countless terabytes of data Aladdin’s main goal is to read the future and its Financial predictions and assessments are really scarily accurate it’s so accurate in fact that over the course of 2020 Aladdin was trusted to manage over 21 trillion dollars now Warframe the major banks are profiting
Of this technology enormously and every time someone uses this technology this then goes back to Blackwood themselves who charge fees for every penny that Aladdin handles but what Aladdin really represents is the tenocrat ideal of being able to control risk in the future every line of code in Aladdin is aligned
Towards the ultimate goal of averting and avoiding Risk by analyzing the past ladder can keep the system running in perpetuity and this is another reason that wolves you in the financial World At Large is so enamored with Aladdin his job is to keep the system which has made
Them also Rich completely intact so any money they put into Aladdin only furthers this cause it’s a positive feedback loop and it’s growing exponentially for example in 2013 Aladdin controlled seven percent of the world’s Financial assets but today this is more than doubled and if money equals power then Aladdin represents the most
Powerful entity the world has ever seen and Aladdin is only the puppets of BlackRock BlackRock is the one overseeing all of this power they’re the ones with control over all of this money and again the media establishments partially owned by BlackRock a quick term point out the fact that it’s
Blackbrook’s clients that actually hold the power but blackbook themselves have admitted that they control all the decisions and weights behind Investments now legally BlackRock has full control over the influence their Investments have despite the fact that they’re not technically owned by BlackRock and because BlackRock shares in companies
Are so large they often get a seat on Executive boards and a large share of voting power and behind the doors BlackRock and other companies like them have Untold influence on the decisions of the largest companies and the soft power that BlackRock has is immense I
Mean Larry Fink the founder and CEO of the company is always regularly brushing arms with world leaders he attends the G20 meetings where he recently just gave a speech to world leaders and regularly holds one-to-one meetings with presidents like Emmanuel macron and BlackRock particularly has huge influence over the US government ever
Since the US government’s gave Blackwell complete control of the assets that came out in the financial crash in 2008. there’s always been a very special relationship between the two entities I mean all the presidents have consulted with Larry Fink on financial matters with BlackRock Executives gaining hugely powerful government positions like Brian
DC a former BlackRock executive that now leads Biden’s National Economic Council I mean the US government has so many ex-blackrook employees that they might as well just be another one of their Investments and this is also that black world can maintain their immense power and keep the status quo in check but in
Fact this has been going a step too far in recent years as Blackrock in classic fashion has Quantified their own political agenda into an investment rating metric where they give each company a quote ESG score based on sustainability and other humanitarian concerns the only problem is that it’s
All just screen washing I mean despite these Noble claims of helping Humanity BlackRock is still heavily invested in fossil fuels and other companies that run completely opposites that broadcasts ideals they don’t mind funding sweatshops in China as long as their investments in like and apple continue
To be profitable and yet on the surface they push the environmentalist gender hard unless in this way that Blackpool represents the entire corporate ideology of empty activism by saying the right things and enforcing their own political policies Blackwell can pretend to be a force for good in the world was doing
Nothing to actually help Society we’re one of the fastest growing companies related to decarbonization in fact they only condemn companies and Council companies that don’t follow their political agenda but nowadays people are waking up to this more and more we see more criticism of BlackRock and their influence in the entire global economy
And when it comes to things like owning a house people are starting to realize that the main enemy in America is Blackrock and this is probably one of the only good signs for the future because despite blackworks buying off the media more and more people are becoming aware of blackrock’s Insidious
Business plan however considering that a large part of blackworks business is based on avoiding risks and disaster it’s likely that they’re here to stay or whilst they collude with the world economic forum and government leaders whilst you stay poor because of it foreign
