Saturday, April 27, 2013

Liquidity Finds the Weirdest Places

Money printing and pushing cash to banks does not always go where you intend it to go. It doesn't even go where you want it to go. It goes where investors want to put it. A new online platform opened up for people to buy and sell royalties (The Royalty Exchange). The goal is to allow sellers to get liquidity for their assets and for buyers to find alternative investments. Yes, this is another consequence of the FED's ZIRP. This platform is like a ghetto version of the famous Bowie Bonds. The low cost for purchase and lower tier goods for sale make it look more like a local property management firm's website. We have 48 million Americans on food stamps and U6 unemployment of 15%, yet shenanigans like the Royalty Exchange are where marginal investors are allocating their dollars.

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