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Because Capital seeking ever greater returns knows no geographic boundaries nor is it especially considerate of the local viability of its arrangements. Just lo

Because Capital seeking ever greater returns knows no geographic boundaries nor is it especially considerate of the local viability of its arrangements. Just look at what Buffet-owned Clayton Homes is doing with trailer park mortgages in rural areas: https://www.seattletimes.com/business/real-estate/the-mobile-home-trap-how-a-warren-buffett-empire-preys-on-the-poor/ https://www.seattletimes.com/business/real-estate/the-mobile... Or how private equity has been buying up real estate in the rust belt.

lotsofpulp 7y ago
Rents don’t increase because capital seeks returns. Rents increase because of shifts in the supply and demand curves.
- claudeganon 7y ago
  Perhaps in an economics textbook, but in reality: https://www.journals.uchicago.edu/doi/abs/10.1086/701697 https://www.journals.uchicago.edu/doi/abs/10.1086/701697
  - lotsofpulp 7y ago
    I don’t see what that has to do with my point. If poor people had more supply to choose from, they would be able to shop around and pay less.
- lonelappde 7y ago
  You wrote the same thing two ways, like "F is not ma; KE is mv^2/2"
  - lotsofpulp 7y ago
    I would like to see someone try and make money in Cairo, IL just because they have capital and “ seek returns”.
    - deleted 7y ago
      [deleted]
turk73 7y ago
Not sure why you are getting down voted other than what you are saying is an unpopular truth. In general, rent seeking is at all-time highs and something will break because a large number of Americans are making $15/hr or less and that's just not sustainable in a nation where health care costs have skyrocketed, education costs have skyrocketed, food, fuel and basic necessities are seeing price inflation, all the while these billionaires are throwing around dollar figures with 8, 9, 10 zeros at the end. The rest of us still count our change for a lunch that used to cost $6.39 but now costs $12.98. I just personally feel like pitchforks and torches aren't that far off for real.
sct202 7y ago
I think it's interesting that in your previous post you harp on East Coast PE firms and Amazon ('coastal elites') and then in this example Buffet is based in Nebraska and Clayton Homes is based in Tennessee.
- claudeganon 7y ago
  Blackstone did the same thing: https://www.wsj.com/articles/blackstone-moves-out-of-rental-home-wager-with-a-big-gain-11574345608 https://www.wsj.com/articles/blackstone-moves-out-of-rental-...
  - deleted 7y ago
    [deleted]

lotsofpulp 7y ago

Rents don’t increase because capital seeks returns. Rents increase because of shifts in the supply and demand curves.

claudeganon 7y ago
Perhaps in an economics textbook, but in reality: https://www.journals.uchicago.edu/doi/abs/10.1086/701697 https://www.journals.uchicago.edu/doi/abs/10.1086/701697
- lotsofpulp 7y ago
  I don’t see what that has to do with my point. If poor people had more supply to choose from, they would be able to shop around and pay less.
lonelappde 7y ago
You wrote the same thing two ways, like "F is not ma; KE is mv^2/2"
- lotsofpulp 7y ago
  I would like to see someone try and make money in Cairo, IL just because they have capital and “ seek returns”.
  - deleted 7y ago
    [deleted]

turk73 7y ago

Not sure why you are getting down voted other than what you are saying is an unpopular truth. In general, rent seeking is at all-time highs and something will break because a large number of Americans are making $15/hr or less and that's just not sustainable in a nation where health care costs have skyrocketed, education costs have skyrocketed, food, fuel and basic necessities are seeing price inflation, all the while these billionaires are throwing around dollar figures with 8, 9, 10 zeros at the end. The rest of us still count our change for a lunch that used to cost $6.39 but now costs $12.98. I just personally feel like pitchforks and torches aren't that far off for real.

sct202 7y ago

I think it's interesting that in your previous post you harp on East Coast PE firms and Amazon ('coastal elites') and then in this example Buffet is based in Nebraska and Clayton Homes is based in Tennessee.

claudeganon 7y ago
Blackstone did the same thing: https://www.wsj.com/articles/blackstone-moves-out-of-rental-home-wager-with-a-big-gain-11574345608 https://www.wsj.com/articles/blackstone-moves-out-of-rental-...
- deleted 7y ago
  [deleted]