Drain The Swamp, The End Of ZIRP, Let’s Talk about Bad FISCAL Policies: SoftBank’s WeWork, once most valuable US startup, succumbs to bankruptcy – October 7, 2023

 

WeWork is Real Estate, and for the most part, the commercial and RESIDENTIAL real estate markets have crashed, but the question remains: why haven’t prices collapsed? Well, the answer to that question is easy: there’s still a lot of CHEAP money WITH a new PRICE tag floating around the economy.

A lot of BORROWED money is still in circulation, and as interest rates NORMALIZE, it’s getting increasingly difficult to get new SUCKERS to finance bad companies.

Bad companies are very similar to bad FISCAL policies and this was always my problem with DONALD TRUMP. I was a huge fan of the 2015 Candidate Donald Trump who claimed he would DRAIN THE SWAMP, in my ears that meant cutting regulations and HIGHER INTEREST RATES, which would make the U.S. economy not only more competitive but also simultaneously DRAIN THE MARKETS of what are now these Environmental, Social, and Governance(ESG) companies which under ESG regulations qualify for cradle to grave WELFARE.

 

The ADDITIONAL regulations added to the economy via these PROGRESSIVE voters and politicians have created a nightmare for the economy, which have accelerated what should be HYPERINFLATION, but, as you’re seeing, hyperinflation is ONLY showing up in the real estate markets.

Why Inflation is showing up in the REAL ESTATE markets

If for example you move to Russia, you’ll notice that their rental and over real estate markets are AFFORDABLE to the average Russian, whereas if you go to countries like Canada or the United States, the real estate markets even in some CRIME-ridden areas, will be high, why is that you ask?

Because of FISCAL policies, in most CITIES in the U.S. and Canada, there are a lot of regulations in real estate; this equates to HIGHER operating costs in real estate, which ultimately equates to more entities using risky DEBT financing to run their business.

Now, when debt is cheap, blocks of money can be purchased for cheap, but with interest rates normalizing, the cost of debt gets more expensive and because there is NO appetite for Austerity measures in the housing markets in major cities, obviously the commercial real estate market is going to get hit first.

Commercial real estate is a cash cow for most municipalities, and progressives love to target businesses for tax revenue to help grow their socialist utopia. WeWork put itself in the worst position during a Zero Interest Rate Policy. Forget cleaning toilets, I don’t want to be inside any municipal courtroom after a business or a tenant DESTROYS my property because the judge, is incentivized to side with the tenant, meaning that if I get into real estate, most of the time I’m INCENTIVIZED to be a FLIPPER, or charge high UPFRONT costs.

The one portion of real estate that is not suffering YET is LUXURY real estate for the rich, because typically rich clients have more than one property, which is why during periods like this, the RICH GET RICHER, as you might even find luxury real estate on SALE, because the economy is slowing.

Joe Biden is by far the WORST U.S. President of all time, but I also have to question Donald Trump’s financial IQ, because WeWork and companies like it, should have gone bankrupt during Trump’s Presidency, but Trump made sure to attack Jerome Powell when Powell started raising interest rates, which angered people like me, to the point that I genuinely don’t want to see him president again.

Trump wants to rule like a KING, he wants to be the hero of the story, and if you’re a true Conservative, that’s not how this works, like it or not we are the IGNORED important people in history.

There’s nothing glamorous about being the President, you’re not supposed to ENRICH certain segments of the population to the detriment of another segment, which is exactly what Joe Biden is doing and exactly what Donald Trump did.

This is of course the inherent flaw in Democracy and this is why, Zero interest-rate policy (ZIRP) is and always will be FISCAL policy. Commonsense should have showed Trump that by cutting regulations, the market would have started correcting itself and YES, some companies would go bankrupt, but that’s par for the course.

That’s how you DRAIN THE SWAMP, why prop up these ZOMBIE companies? In Japan they’ve been propping up ZOMBIE companies for year, however, their system of governance differs greatly from the United States, and the Japanese people are still disciplined SAVERS who do not rely on the government to take care of them, in fact in Japan it’s the opposite, the government is the reason why generations of Japanese people haven’t been able to find jobs.

Even with the fiscal destruction to the U.S. economy there are still a lot of jobs in the United States, a lot of ILLEGAL aliens are still able to find jobs in the United States, a lot of people tend to forget the reasons why ILLEGAL aliens flock to Democrat run U.S. states, especially U.S. cities that have Sanctuary cities, it’s because ILLEGAL aliens generate a lot of revenue for the state, while the city will simultaneously support Labor Unions.

Sounds crazy, right? Not, when you comprehend what’s actually going on, so in PRACTICE, this equates to most people WANTING regulations cuts, but not saying it out loud, this is again something I thought Donald Trump comprehended instinctively, there’s a reason why people like myself admire Former Governor of Puerto Rico Luis Fortuño.

It takes heart to do that, and also a comprehension that you’re likely going to get thrown of politics and demonized soon after, with Donald trump, he is obsessed with getting the glory and praise, meaning that similar to Joe Biden, you can see a scenario in which Donald Trump similar to Joe Biden does systematic damage to the nation.

With compromised Joe Biden, they damage he’s causing is easy to observe, however with Trump, the damage he causes, is only easy for those of us who know what’s really going on in the economy to see.

Interesting times ahead!