{"id":4652,"date":"2010-11-09T09:07:41","date_gmt":"2010-11-09T14:07:41","guid":{"rendered":"http:\/\/www.technologyinvestor.com\/?p=4652"},"modified":"2010-11-10T18:08:13","modified_gmt":"2010-11-10T23:08:13","slug":"the-insanity-and-urgency-of-yield-less-deals","status":"publish","type":"post","link":"https:\/\/www.technologyinvestor.com\/?p=4652","title":{"rendered":"The insanity (and urgency) of yield-less deals"},"content":{"rendered":"

Forty-eight institutions recently bid on a fully-rented apartment building in Portland. The place went for a four cap. That means the winner gets to earn a mighty 4% on his money, perhaps a little more if he borrows and gears up.<\/p>\n

A four cap on a fully-rented, at-top rents building is insane. It bespeaks loads of the desperation among institutions (insurance companies, pension funds, etc.) to pay up for yield — any yield.<\/p>\n

It bespeaks enormously of the desperation among institutions out there.<\/p>\n

Everything speculative is on fire. Commodities, gold, silver and PCX (which I liked recently).<\/p>\n

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This short-term boom will last while Uncle Ben showers the economy with dollar bills, also called QE2 –quantitative easing 2.<\/p>\n

Do not consider this investing. This is rampant speculation. We’ve seen how the Fed’s ultra-low interest rates produce a bubble and then a collapse. It happened several times in the past ten years — most particularly the housing bubble.<\/p>\n

This is not the way to run an economy. But it is the way to inflate a bubble Enjoy it while it lasts. Keep moving your stops up.<\/p>\n

Favorite latest New Yorker cartoons.<\/strong><\/span><\/p>\n

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Two old guys.<\/strong><\/span><\/p>\n

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\n<\/strong><\/span><\/p>\n

One said to the other: “My 75th birthday was yesterday. Wife gave me an SUV”.<\/p>\n

Other guy: “Wow, that’s amazing! Imagine, an SUV! What a great gift!”<\/p>\n

First guy: “Yup. Socks, Underwear and Viagra!”<\/p>\n

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\n<\/strong><\/div>\n

Harry Newton who wonders why Continental doesn’t provide pillows in first or peasant class on Red Eyes from Portland to New York. But the good news (for Australia) is that the Australian dollar is now higher than the U.S.\u00a0 Which is simply amazing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Forty-eight institutions recently bid on a fully-rented apartment building in Portland. The place went for a four cap. That means the winner gets to earn a mighty 4% on his money, perhaps a little more if he borrows and gears up. A four cap on a fully-rented, at-top rents building is insane. It bespeaks loads […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4652","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/4652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4652"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/4652\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}