The New York Times had this to say today on the reason for the recent run-up in real estate prices -- http://dealbook.nytimes.com/2013/06/03/behind-the-rise-in-house-prices-wall-street-buyers/
Well, well. This high-finance chicanery reminds me of a classic story --
Farmer Brown was walking by Farmer Green's farm one day and noticed a very fine looking mare in the side pen. He stopped to admire the horse and then decided he would ask Farmer Green what he wanted for the horse. Farmer Green said he would part with the horse for $50. Farmer Brown thought it was a steal so he paid the $50 and took the horse home. A week later, Farmer Green is walking past Farmer Brown's place and sees the mare in his side yard. Farmer Green thinks to himself that he was crazy to part with such a fine horse so he approaches Farmer Brown to buy the horse back. Farmer Brown says he'll sell the horse to Farmer Green for $100. Farmer Green hands over the $100 and takes the mare home with him. Another week passes and Farmer Brown is once again walking past Farmer Green's place and sees the mare, regrets selling her, and pays Farmer Green $150 to buy back the mare. A month passes and Farmer Green is passing Farmer Brown's farm and can find no sign of the mare so he goes up to the door of the farmhouse. Farmer Brown comes to the door and Farmer Green asks, "Where is the mare?" Farmer Brown responds that he sold the mare to someone from the city who was passing and wanted to buy her. Farmer Green admonished him saying, "How could you sell her. We were making a pretty good living off that horse!"
Rebecca Liming, Indianapolis, IN, as published by Prairie Home Companion: http://prairiehome.publicradio.org/features/hodgepodge/19990410_jokeshow/jokes/0407_14.htm
Back to our regular programming --
If you are a too-big-to-fail zombie banking institution with access to almost limitless zero-interest cash from Big Brother Bank of Federal Reserve, and you happen to hold a huge mess of stinking below-market real-estate assets, what could be better than closing down the public market and trading these assets up with your bankster colleagues across the street? Suddenly your balance sheet looks a WHOLE LOT BETTER! An occasional public sale at the marked-up price is all the validation you need. BRILLIANT.
Today's 1% Solution:
"nequaquam sumere possis prius publicum commodum" - Never give the public an opportunity if you can preempt it.
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