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4305 or Dive 6/23/21


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THE FED IS PAYING YOU TO BORROW

The FED through the inflationary mechanism is paying you 2.5% a year to borrow.

Why not buy a house and leverage up 10 to one.

Thats 25% a year return the FED is paying you to borrow on your capital outlay. 

Subtract 5% inflation and your equity in the house will compound at 20% a year above the rate of inflation.

A J number of 20.

Blackrock and the other hedge funds know this.

Its simple mathematics. 

This is simply private equity for houses.

This is how private equity make their money.

By letting inflationary transfer of debtors wealth compound their equity in assets at rates far in excess of inflation.

 

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