Title: Blackstone Group Selling Their Real Estate is a Smart Move.
Author: Andrew M Molchan
Date: Wed July 11th, 2012
July 11, 2012, ANDY'S UNPOPULAR INSIGHTS. Shadows of the Future? What are the Big Investment Groups, like the Blackstone Group, doing with Their Money Now?
The big investment groups like Blackstone and Cerberus have NOT been the sharpest tools in the box for the last six years.
Cerberus bought several gun companies and that was a very good investment. Being in the gun industry, I talked to many of the top Cerberus people. However, for them I was a nobody, and they never asked for my advice about Chrysler. If they had, I would have told them to NOT touch it with a 1,000 mile long pole. I COULD have saved Cerberus a LOT of money.
About the time Cerberus was buying Chrysler, Blackstone had been buying up a LOT of real estate. Today's WSJ headline on the Money & Investing Page is, "Blackstone to Shed Office Empire."
If Blackstone had asked me about real estate in 2006 and 2007 when they bought more than a 100 commercial buildings; I would have told them exactly what I had been saying many times, in the pages of AFI Magazine, during 2006 and 2007. "Do NOT touch real estate with a 1,000 mile long pole because it's a Bubble that has ALREADY started to Crash."
Nobody asked for my opinion about Blackstone NOW selling their real estate. If they had, here's my advice, "For the last six years I've been saying that the FED Kool Aid drinkers are doing exactly what the Japanese have been doing for the last 30+ years. The US FED Japanese Kamikaze wannabes, being totally insane, like all insane people the FED fanatics believe the same Japanese actions will produce totally DIFFERENT results in America. Japan's real estate has gone NOWHERE in 30 years, and the FED has exactly the same low interest, QuEer money programs as the Japanese. The SAME programs WILL have the SAME results in America. USA real estate is going NOWHERE until the FED is totally replace with people who are NOT Keynesian religious cult worshipers and cult fanatics. If replacing the FED Religious Cult takes 40 years, then US real estate will go DOWN for the next 40 years. Blackstone is smart to GET OUT of American real estate now before it goes DOWN another 25% in the soon to arrive QuEer Money Bubble crash."