Just before summer we learn from the darkest Financial Firm in the World that oil prices are set to rally. Summer driving season will be painful and boats will stay moored to the dock:
*CITADEL'S SEBASTIAN BARRACK SPEAKS AT FT EVENT IN LAUSANNE
— zerohedge (@zerohedge) April 8, 2024
*OPEC HAS 'DEFINITELY REGAINED CONTROL' OF OIL MKT: BARRACK
If Citadel expects OPEC to successfully curtail supply while prices are already elevated, this is truly bad news for the summer, though perhaps an exclamation point to any TDS suffering holdouts that still think Biden is better. Gasoline rising above $4.00 starts to make electric cars sound good again.
Interest Rates:
Corrupt Chairman Powell will do what he can to accommodate this Administration. Based on futures markets, current expectations are for two quarter point rate cuts this summer. If Powell finds the way to cut rates and throw an already wildly overheated stock market into an upward spiral, this deeply illogical yet expected event will further drive inflation. As oil is added to the mix, this summer will be painful as we await the 2024 election.
Real Estate Prices:The commodity cycle is repeating 2004-2008. During those 5 years the CPI rose 2.7%, 3.4%, 3.2%, 2.8%, & 3.8% respectively. Not a single year hit the Fed's 2% target, despite 17 rate hike. Only the 2008 GFC stopped the rise. Commodity prices & #inflation will soar if the Fed cuts. pic.twitter.com/gAjpOCJGSR
— Peter Schiff (@PeterSchiff) April 5, 2024
When we look at the economic and social investment of some our most anti-human establishment class, they continue to buy up rental properties, despite record prices, to gain increasing oligopolistic control of rents.
Blackstone is the primary culprit behind the “portfolioization” of real-estate. This is the idea that institutional investors with billions to work with purchase single and multi-family homes as investments. This drives that mysterious supply shortage home shoppers generally witness, as homes get sold off-market, pre-market or via rapid all-cash bids, such that few homes remain on market long enough for ordinary buyers. As Zerohedge reports:
Blackstone agreed to purchase AIR Communities for approximately $10 Billion or $39.12 a share, representing a 25% premium to the company's closing share price on Friday. The deal is being completed through the investment management company's $30.4 billion global real-estate fund.
Blackstone favors rental housing as one of the hottest places in the commercial property market to invest. The acquisition of AIR will give the investment manager exposure to 76 rental housing communities in coastal markets, including Boston, Miami, and Los Angeles.
"The acquisition is Blackstone's largest transaction in the multifamily market," WSJ pointed out.
When we consider the anticipated rise in oil, likely cuts to interest rates amidst existing high inflation, and the return of multi-billion dollar home portfolio investment, the United States may soon expect levels of inflation that compete with less developed nations.
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