On the heels of the post this morning, in which it was suggested that margin debt is being used to finance a buy-to-rent and house flipping strategy by retail investors, today we catch wind that some of the big players that had been piling in to buy single family homes for rental are now backing off. To quote Bruce Rose, CEO of the hedge fund Carrington:
“We just don’t see the returns there that are adequate to incentivize us to continue to invest…There’s a lot of — bluntly — stupid money that jumped into the trade without any infrastructure, without any real capabilities and a kind of build-it-as-you-go mentality that we think is somewhat irresponsible.”
Broken Money
The subtitle is Why Our Financial System is Failing Us and How We Can Make it Better , and the author is Lyn Alden (2023). I feel like I hav...
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In his most recent post , Michael Pettis explains the problem of investment misallocations and too much debt, simply yet brilliantly (his po...
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Are when the contrarian should think about buying. And so I tried. Some AUY LEAPS (filled) and a small mining services company that I like...
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I am reading another book right now by economist Richard Koo, innovator of the balance sheet recession concept. If you remember what his id...