Who has cash? Money Laundries. apple.news/Al372u_QuRJ-vh…
Also, hoarding & money laundering are massive criminal crimes, and so should be treated, not as civil cases.
Nonapple link: washingtonpost.com/business/2019/…
Jason sells a lot of fake drugs to college students, making $100K in cash over 1 year. He pays his rent ($1000/mo in cash) & eats $35/day of fast food/beer. Rents dance hall: $500/mo
100K - 12,000 - 14,000 (food)-$6K - $8K = $60K that someone like Jason has to deal with. No bank account.
He can’t go buy a new car for cash.
If Jason is dumb & drops that money in a bank account in large chunks...
Thus, he turns to a money launderer, who, for a fee, cleans his money.
But if you can’t use ANY of your illegal money? It might as well be Monopoly money. Half, clean, is better than none.
A good front: high cash usage, high turnover, low inventory, service use.
Remember, the problem Skylar White had (Breaking Bad ref) was they only had the one business (the car wash) & she didn’t know how to pay for laundry.
Now: That $800 is clean, and it can be used to pay Jason. W2 & withholding.
But really? Most money laundering is that stupid, just more layered. Every layer is loss, but...
Ask Paulie Walnuts about how far his money traveled. Cyprus, where his good friend Wilbur took care of it.
Real estate is GREAT. That’s the goal. You want it clean enough that you can buy a house with it.
The Russian oil biz is hundreds of billions. There’s not enough CASH on the planet to do the simple scam.
But it’s hard to tell Iranian oil from Saudi oil.
It’s all subsidiary to getting oil into the market and the money into the hands of the oligarchs, be they Iranian religious leaders, Saudi princes, or Former Soviet bosses in the right place at the right time.
Potted plants in their offices knew they were laundering money & hiding assets in about 50 acrimonious Russian divorces.
Wilbur Ross wasn’t an accident. He was the Russian bank contact in Cyprus.
Not as much, no, but that’s not where most of the laundering happens. It happens at the basic apartment building level. Because of a thing called a Real Estate Investment Trust.
Your money laundry clients get $76K per month of clean money- it all came from legal, legit rent investment income property.
REITs clean the money better than a dry cleaner.
What happens when there’s not much real estate to put in a REIT?
Well, remember, there’s loss in money laundering?
And they can outbid someone looking to own a 6 apartment dingbat.
Look at expensive cities. It’s not an accident.
THIS is what, ultimately, at root, drives a housing market where someone will pay $2K a month for a 1 bedroom.
At the state level, demand the Attorney General’s fraud department is funded better than traffic enforcement. Demand transparency from EVERY elected official.
We have to ask them hard questions about money. We can’t be delicate.
We spent a couple decades not paying enough attention, so we now have to pay it with interest. We will spend the rest of our lives being hypervigilant to root it out, but it can be done.
That’s what I got. ~end
My series is out and the first book is free:
A REIT backed by money laundering doesn’t really care if it costs $5M *OR* $10M for an apartment building.
No to edit buttons.
Please return to your reading comprehension class. I didn’t actually say *WHICH* countries don’t play well with other children.
It’s telling *WHO* wants Iran punished.
A SoCal Dingbat apartment building retails for $2-5M at this point. Which means any laundry REIT could have double to quadruple the income stream from the same amount of clean-enough-to-put-in-a-REIT money. But otherwise? Not much changes. Some process, just more.
It doesn’t take a LOT of initial price inflation to START the real estate market moving upwards. Think of this like an avalanche or mudslide. Once the momentum starts, there’s energy in the system making inflation MORE likely.