President Joe Biden has revealed a $2.25 trillion dollar infrastructure proposal to build two million homes and apartments while big money funds are quickly scooping up nearly all available single-family homes.
According to the Hill, Biden’s proposal to build such housing “would spend four times the entire Department of Housing and Urban Development’s 2020 budget on a range of programs meant to fight a housing shortage exacerbated by the pandemic.”
Meanwhile, Jon Wanberg, a central Florida real estate broker and regional investor, says he is “getting offers from hedge funds on every listing … One acquisition manager told me that one of the many hedge funds he is working with is buying 500,000 residential homes,” Wanberg added.
Behind the curtain and before Biden proposed building more housing to mitigate the “affordability crisis,” he signed the coronavirus package in March, giving money in a “short-term bailout” to big money funds.
Research indicates pension funds invest around five percent of assets under management into hedge funds in a growing movement to adopt the asset class. Don Steinbrugge, CEO of hedge fund consulting firm Agecroft Partners, says the “Hedge fund industry assets under management will grow for the 11th time in 12 years in 2020.”
Indeed, Sen. Bill Hagerty (R-TN) said of the bill, “there’s more money in this to bail out union pension funds than all the money combined for vaccine distribution and testing.” Sen. Chuck Grassley (R-IA) also added, “Not only is [the Democrats’] plan totally unrelated to the pandemic, but it also does nothing to address the root cause of the problem.”
In essence, money ultimately originating from the American taxpayer was disbursed from government coffers to big money funds with massive purchasing power to buy homes and even whole housing developments, spurred by historically low interest rates, which Barron’s says is probable to increase inflation.
“Central bankers routinely deny any connection between their monetary policies and asset prices, even though that’s how those policies are transmitted to the real economy,” Barron’s reported on February 5. “’Pay no attention to that man behind the curtain,’ they all but insist, as the lightning and smoke jumps and hisses while they manipulate the controls, believing that they’re shrouded from view,” the financial outlet wrote.
Wanberg also believes inflation is coming due to the pandemic related stimulus with big money allocating their funds in relatively low-risk housing.
“And the signs of it are hedge funds trying to jump on the train before the train leaves the station,” which Wanberg warns may cause a “wealth divide,” and American workers who are receiving “their $600 checks can’t see it yet,” he told Breitbart News.
Wanberg reasoned, “The government is creating economic slaves and we are welcoming it and running to our mailboxes to pick up our stimulus checks. If you think the ‘Wealth Divide’ is bad now, just wait until hedge funds own all the real estate and you have to rent from them.”