From Pine View Farm

Update from the Foreclosure-Based Economy 1

“Private equity” is buying up houses in Sacramento.

An investment firm that owns the Waldorf Astoria hotel and the Weather Channel has bought more than 500 houses in Sacramento in the past few months, betting upward of $60 million that home prices will rise.

Blackstone, a New York-based group with billions of dollars in investments and offices from London to Tokyo, has been snapping up low-priced homes across the region, from Elk Grove to Citrus Heights, at a rate of about 40 a week.

The article continues for 1500 words of speculation that amount to “this is unprecedented and no one knows what it implies.”

I believe it implies that they are betting on the return of the bubble.

In the meantime, they’ll find some way to give themselves bonuses for being such awesome masters of the universe, until the whole thing collapses into a pile of Twinkies with the cream sucked out of them, as by a giant vampire squid.

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1 comment

  1. George Smith

    November 25, 2012 at 11:58 am

    Last graph, well done!