Naked Capitalism has the article Wolf Richter: How Much Money Laundering is Going On in the Housing Market? A Lot.
The US housing market has been a perfect platform to launder large amounts of money, no questions asked. Brokers, banks, and other industry professionals played along. There were no reporting requirements. Everyone in the world knew it. And they came to launder their cash by buying expensive homes.
I hadn’t thought about this activity until reading about it in this article. It is valuable information because it may give a hint at a bubble that is about to burst. As a participant in the economy, it is always nice to know when it may be wise to take cover.
As an aside, this may explain why 45 thought this was an opportune moment to get out of the luxury housing market and take a safe job as President of the United States.
I am going to file this under Greenberg’s Law of Counterproductive Behavior.
If you see a behavior that seems to you to be counterproductive, perhaps you have misunderstood what that behavior is meant to produce.
In case you wondered why there were people who were willing to pay exorbitant (and seemingly counter-productive) prices for luxury homes, now you know what they were trying to produce. They were paying to get their money laundered.