[monnok]

I sold my house to PE. I work for a conglomerate that was captured by a vulture capitalist and immediately flipped to PE. I’ve been thinking a lot about PE.

I think PE is this decade’s banks bailout. Bank balance sheets were severely unhealthy in the face of fixed rate loans and skyrocketing inflation. Easy credit was eagerly extended to anyone crooked enough take on variable rates and capture real assets.

The LLCs that the smart firms financed for their small captures (like houses) are going bankrupt while the revenue they booked is already packaged into REITs and held by corporations as part of their supposed inflation hedges (or timebombs).

Meanwhile, the reckless PEs owning multiple corporations are either going to flip them to international bag holders, or drown under the operating costs of servicing 100% debt-financed equity themselves.

When catastrophe comes, and bagholders go under, rotten assets will revert to the banks… and taxpayers will bailout the banks to protect hundreds of PE-owned corporations and thousands of “innocent” corporations saddled with toxic REIT-backed instruments and each other’s default swaps.

All of which means, if you were priced out of a home in the last three years, it might have been your future tax paying self who outbid you… on behalf of the banks who will indirectly own that home.