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Monopoly Isn’t A Game, It’s A Prophecy
by Jared A. Brock
Posted September 22, 2021
We’re living out the insidious rules in real-time. As a game of Monopoly progresses, every property with a house on it is eventually turned into a passive rental property. This is already the lived reality for America’s 115.4 million renters, who fork over their hard-earned after-tax dollars to 23.7 million extractive landlords.
But that’s only half the prophecy.
The century-old game predicted, with terrifying accuracy, something that no one in the 1900s could’ve foreseen becoming a reality: That, in time, after every owner-occupied house had fallen to the land-lorder, every rental would be transformed into a hotel.
Enter Airbnb, the emerging monopoly that will likely go down in history as the most dangerous and society-shattering company ever created. As landlords convert their properties to Airbnbs… and holiday companies buy up collections of Airbnbs… and hedge funds use outrageous leverage to buy up portfolios of holiday companies… and sovereign wealth funds swallow hedge funds whole… it’s no wonder that the average house will cost $10 million in 50 years.
House prices used to be based on the maximum amount that an area’s average local buyer could afford to mortgage over 25–40 years.
Under the rapidly emerging monopoly paradigm, a house’s value is now the maximum amount of daily rental income that can be extracted from it by a global institutional investor, multiplied by maximal institutional leverage. More…