Tyler Durden
ZeroHedge
10/7/2012
Back in July, when the news of the French foray into the “fairness doctrine” hit, and we learned of Hollande’s plan to tax all those making over €1 million at a 75% tax rate, we said that “we are rotating our secular long thesis away from Belgian caterers and into tax offshoring advisors, now that nobody in the 1% will pay any taxes ever again.” We should have also added that we are buying all the available long-dated call options in French real estate firms, with the imminent surge in luxury real estate dumping, once the French “1%” decide they want nothing to do with a regime that is hell bent on confiscating 75% of their annual cash flow at first, and slowly moving toward pocketing the balance of their assets (remember what we said in September 2011: that 30% global tax on all financial assets in a New Normal insolvent, and wealth redistributive world, is inevitable, and it is coming). Sure enough, the wholesale dump of luxury properties has now begun.
AFP writes: “A flood of top-end properties are hitting the market as businessmen seek to leave France before stiff tax hikes hit, real estate agents and financial advisors say. “It’s nearly a general panic. Some 400 to 500 residences worth more than one million euros ($1.3 million) have come onto the Paris market,” said managers at Daniel Feau, a real-estate broker that specialises in high-end property.” But that would mean that in the New Normal real estate is once again merely a credit-bubble dependent, flippable asset: not a long-term housing investment, but merely one in which the pursuit of the greater fool is all that matters (not news to anyone here, but certainly news to all those who actually believe that ‘housing has bottomed’).
Turns out it hasn’t, and just like the stock market, it was simply an alternative asset class for those closest to the ZIRP cost basis, to invest their money until Uncle Socialist comes a-knocking…
…However, the biggest issue is that the encroaching taxation of the world’s 1% by insolvent sovereigns is only just beginning…
The complete article is at ZeroHedge.
Here is the AFP article.
This is why elections matter…
Related: Princeton Economist: Obama Campaign Is Misrepresenting My Study on Romney’s Tax Plan
…Princeton professor Harvey Rosen tells THE WEEKLY STANDARD in an email that the Obama campaign is misrepresenting his paper on Romney’s tax plan..
Update: Not Paris, but equally disgusting: France, the land of Liberté, égalité, fraternité & we’ll cut off your head if you sell pork or booze…
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