Wealthy Land Banking and Its Impact

I know wealthy people,

they own 16 estates on the eastern shore,

and they live in two of them.

Like, why do they buy them?

They land banking.

What does that mean?

Well, the guy makes a lot of money every year,

and he doesn't want to put it in a savings account,

so he goes and he just buys a cool piece of property,

and he buys another one.

Well, okay, it sounds good, but here's the problem.

The guy buys up the beautiful pieces of property, and so you can't afford it,

and if the rich guy wasn't buying up all the beautiful houses, they would cost half as much, and you could live in a beautiful house.

So here's what happens.

Some rich dude has 27 houses that are empty.

You don't have a beautiful house.

You have a family.

Your kids, your dog could use the beautiful house.

The rich dude doesn't even want the house.

He just wants a long-term capital preservation strategy, right?

And so that's a perverse incentive and a distorted economy.

That's broken. That's broken money.

That's because the rich dude is using an estate on the eastern shore of Maryland as a piggy bank.

Huh? But the estate doesn't get renovated.

The house is falling down.

There's a beautiful pool on the water, and you could have a great family picnic there every Sunday,

but it's not going to happen because the rich dude has 16 other houses.

He just bought that house because he thought it was a good investment.

Okay, that's wrong.