Category: Wealth Tips

The past two months have seen a barrage of negative news coverage focusing on the US housing market…

… which is predictable: after all, with mortgage rates soaring at the fastest pace on record to decade highs, and sending US housing affordability to the lowest in history…

… only a handful of the “1%” can afford the American Dream.

Alas, it also means that just like in 2007, a housing crash is now just a matter of time.

That much is known. What is also know, is that once housing craters, the largest US residential and commercial landlord – private equity giant Blackstone – is about to get even bigger. That’s when it will deploy some (or all) of the record $50 billion in dry powder it has raised to prepare for just the coming housing crash.

According to the WSJ, Blackstone is the final stages of raising a new real-estate fund that would set a record as the biggest vehicle of its kind, defying market volatility and a crowded landscape for fundraising.

The private-equity giant said in a regulatory filing Wednesday it has closed on commitments totaling $24.1 billion for Blackstone Real Estate Partners X, the latest iteration of its main real-estate fund.

According to the WSJ, Blackstone is committing about $300 million of its own capital and has allocated an additional $5.9 billion to investors, which will bring the fund to $30.3 billion when it is finalized. The firm raised the fund, expected to be the largest traditional private-equity vehicle in history, in just three months.

It won’t be just Blackstone that goes bottom fishing in a few months: a slew of private-equity funds are in the market this year, with many trying to raise huge sums even after stocks fell and deal-making dried up. The surge in requests for new cash has overwhelmed investment teams at institutions such as pension funds and endowments and has meant many have delayed making commitments to all but the top managers.

https://www.zerohedge.com/markets/blackstone-prepares-record-50-billion-snap-real-estate-during-coming-crash

Legendary financial and geopolitical cycle analyst Martin Armstrong says the time to prepare is now for what is coming in 2023. (Tom: If the Power Elite have told us what they are planning, even written books about it, the pundits are predicting it and the preliminary evidence is manifest, and we do insufficient to prevent it or at least mitigate the effects of it on us personally, who is to blame?)

https://www.zerohedge.com/geopolitical/2023-will-be-year-hell-martin-armstrong-warns-inflation-driven-civil-unrest

Blackstone just went public.

https://larouchepub.com/eiw/public/2007/eirv34n27-20070706/71_727.pdf