Every mainstream media outlet is predicting a looming housing market crash. But billionaire real estate investor and bestselling author Grant Cardone says there will be no housing crash in America.
Grant Cardone walked us through his thoughts on the economy and the future of housing in America.
“The day of owning a home, if you don’t grab yours in this next cycle, you’re probably not going to have one in your lifetime.”
Grant says these homes are going to become rental properties primarily for the investor, not the end-user.
And, in the process, become extremely valuable in the future.
Advertisement
The only thing that would change the trajectory of ownership statistics, in his eyes, is if mortgages are hypothetically stretched from 30 years to 50 years.
Grant believes we could see this really happen in our lifetime.
A 50-year mortgage would mean people would pile back into housing due to the significant drop in payments.
Inflation in America and the Impact on the Housing Market
“I don’t believe that anybody, any fed or any group within the government can actually manipulate inflation. I don’t know of any time in history where a monetary policy actually removed inflation from the equation. I’ve only been around 64 years though; I’ve seen prices go up the whole time, I’ve never seen prices not go up,” said Grant Cardone when addressing the impact of inflation on the housing market.
And it makes sense.
The housing market has a history of outpacing inflation, which has certainly made it much more difficult for people to buy houses over time.
For the investor however, it means the value of their properties will always rise despite any minor pullback in the market.
Advertisement
The typical homebuyer in the 80s was 25-34 years old whereas in 2000 the typical home buyer was 44.
Rent in America will continue to rise and so will the value of properties, and it seems the fed can only do so much to drive inflation down.
What I got from this important conversation was Americans will need to start playing on the offense.
Amazon plans to start advertising on Twitter again to the tune of about $100 million a year, Platformer journalist Zoë Schiffer tweeted.
According to her tweet, the online retail giant was waiting for “some security tweaks” to Twitter’s ads platform before returning.
The news comes a day after Elon Musk said Apple had “fully resumed” advertising on the platform. Musk later tweeted to “thank advertisers for returning to Twitter.”
Half of Twitter’s top 100 advertisers pulled their spending in the days after Musk took over Twitter, according to research center Media Matters.
They collectively spent $750 million on Twitter ads this year alone and accounted for almost $2 billion of the company’s ad revenue since 2020.
General Motors was one of the first advertisers to announce it was pausing ads on Twitter. The Tesla rival said in October it needed to review the platform under Musk’s leadership. The decision came as a result of GM’s concerns that its Twitter data could be passed on to Tesla, sources told The New York Times.
Advertisement
Amazon Plans to Invest Billions in Movie Theatre Industry
Amazon plans to invest more than $1 billion per year into theatrical distribution releases per Bloomberg news.
Amazon.com Inc. will be investing billions of dollars to produce movies that will release in theatres, according to people familiar with the company’s plans.
This is the largest commitment to the movie theatre industry by an internet company, says Bloomberg.
The world’s largest online retailer aims to make between 12 and 15 movies annually that will get a theatrical release.
Amazon is still sorting out this strategy said people who asked not to be identified.
That number of releases puts Amazon on par with major studios such as Paramount Pictures.
Bankrupt cryptocurrency lender BlockFi is suing Sam Bankman-Fried over shares in Robinhood that the FTX founder allegedly pledged as collateral earlier this month.
Just hours after filing for bankruptcy protection, BlockFi on Monday sued Bankman-Fried’s Emergent Fidelity Technologies vehicle, demanding he turn over unspecified collateral BlockFi says it is owed.
The complaint was filed in the same New Jersey court where BlockFi initiated bankruptcy proceedings.
The collateral at issue is Bankman-Fried’s stake in Robinhood, the online trading company, according to loan documents seen by the Financial Times.
He bought 7.6% of Robinhood earlier this year.
Advertisement
Sam Bankman-Fried / FTX Scandal
The dispute is the latest blow to Bankman-Fried, whose $32bn FTX empire collapsed this month in what is the biggest insolvency of this year’s crisis in crypto markets.
Authorities in the US and the Bahamas, where FTX was headquartered, have launched investigations.
BlockFi’s bankruptcy filing shed further light on Bankman-Fried’s fall, showing that his failed crypto trading firm Alameda Research defaulted on $680mn of collateralized loans in early November.
The complaint claims that BlockFi entered into an agreement with Emergent on November 9 to guarantee the payment obligations of an unnamed borrower by pledging certain “common stock” as security.
Earlier in November, the Financial Times reported that Bankman-Fried had been privately attempting to sell the Robinhood shares using the secure messaging app Signal in the days leading up to FTX’s bankruptcy filing on November 11.
BlockFi also named brokerage ED&F Man Capital Markets in its lawsuit, saying the London-based company was the broker involved in the pledge agreement.
ED&F Man has “refused to transfer the Collateral to BlockFi”, the lender states in the complaint. BlockFi, Bankman-Fried and ED&F Man did not immediately return requests for comment.
Ken Griffin told Fox Business, “FTX is one of these absolute travesties in the history of financial markets.”
Griffin expressed concern that losses sustained by younger investors who lost money due to FTX may make them less likely to invest their savings in capital markets, including traditional instruments like stocks and bonds.
“The confidence, though, of a generation in financial markets has also been shaken. That’s really awful because the 20-some-year-olds to 40-year-olds who are so engaged in crypto — they’ve got to save for their retirement, and if they don’t believe or trust in financial markets, this is a huge problem. They need to own stocks, they need to own corporate debt, they need to partake in our global capital markets,” Griffin said.
Concerns in the retail community have also surfaced by the AMC Entertainment token that appeared on FTX’s cryptocurrency exchange.
Ben Armstrong will be interviewing Sam Bankman-Fried within the next few weeks via Twitter Spaces.