Real Estate and Stagflation | Turning a Crash into Cash

Downtown areas today present historically low prices for real estate investors.

Stagflation is the Name of the Game: The Dollar is Dust

REAL ESTATE NEWS (Los Angeles, CA) — Jawbone Jerome Powell today attempts to placate markets by raising interest rates. Unfortunately, Jerome’s half-hearted attempt at finally correcting radical fed monetary policy is too little too late. Inflation is already out of control, and cannot be fixed by increasing interest rates to 4, 5 or 6 percent. We are witnessing major changes, including the way we make, spend and save money. The U.S. Dollar is being replaced by blockchain cryptocurrencies. The laws of economics are fundamental in this analysis: Good money chases out bad. New money destroys old. Blockchain cryptocurrency annihilates the value of the US Dollar, which results in inflation. Radical fed policy and digital money printing results in inflation. Uncontrolled federal government spending results in inflation. Raising interest rates to 6% can put a slight dent in our runaway inflation, but cannot contain inflation that has such historic pressures pushing toward rapidly growing inflation.

We’re watching these changes play out in the form of stock market crashes that quickly end up at all-time highs, along with a real estate market crash that will also quickly end up at an all-time high. These are the effects of stagflation: economic stagnation combined with price inflation. It’s a one-two punch towards a terrible economy. That’s why the U.S. has the most pessimistic economic polls in many years.

As we mentioned recently, the billionaires and other astute investors are taking full advantage of the crashy stock market by picking up stocks on the cheap from the gut-punched dumb-money investors. With plenty of blood on the street, this fearful time is precisely the time to start picking up some good deals in the stock market in the form of high-quality stocks. For real estate, now is precisely the right time to pick up high-quality properties, while they are historically low-priced, in lockdown-depressed inner-city areas such as Downtown Los Angeles.

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Penthouse level properties exemplify the high-quality real estate that is near a historical low point in urban L.A.

Stock Market Crash and Real Estate

REAL ESTATE NEWS (Los Angeles, CA) — We’re seeing one of the biggest sell-offs of equities since 2008. While that may seem like very bad news to many, the “blood in the streets” investors are licking their chops. Warren Buffett is pouncing, loading up his behemoth Berkshire Hathaway, and feasting on energy stocks as inflation soars. Warren is following his own sage advice: “Be greedy as others are fearful.” Let’s be careful not to miss the details. He’s picking up companies that benefit from runaway inflation.

We’re seeing several reports of real estate cooling, while most also report that home prices continue to climb. This combination of economic stagnation and price inflation in housing further bolsters the notion that stagflation is the hallmark 2020s real estate market and many other sectors. Fortunately, for many loft blog readers, real estate is also one of the best inflation hedges.

How much is your home worth? Find out how much the home down the street sold for. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | PopularLuxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.