Dear friends,
Everyone who has even the slightest fondness for quality music has heard of the rock bank “Queen”. The band was founded in London in 1970 by the legendary Freddie Mercury. They gradually developed a global presence in popular culture and their prominence lasted for more than half a century. Estimates of their record sales range from 250 million to 300 million, making them one of the world’s best-selling music artists.
Most people know their famous songs “We Will Rock You”, “We Are the Champions”, and “Bohemian Rhapsody”. Interestingly none of these was their most popular and best-selling single. That title goes to the song “Another one bites the dust”. The song sold over 7 million singles and has since being covered and remixed several times. The lyrics are quite mysterious, starting in a scene of a mafia movie with machineguns and later referring to a failed relationship. So what does all this have to do with Spanish Real Estate you may ask.
To “bite the dust” means to die or to lose. This week we saw the headlines of another bank failure in the US, the second biggest in history. This time it was First Republic, which was eventually acquired by JP Morgan. Another story of a bank “biting the dust”. Another story of the markets gunning down a bank that had very poor risk management processes. Another story of a failed relationship between the bank and its clientele.
What lead us to one more huge bank failure? The said bank had taken a lot of deposits fast and invested in low yield instruments. The managers decided to give out a lot of mortgages at low rates, sometimes 2%-3% below the market. The regulators were caught sleeping on the wheel, doing nothing for more than a year after problems were first reported. Very basic stuff, but still nobody did anything to fix the problem. We may sound like a broken radio, but at Artemis Assets it is our duty to remind you. This cannot happen in Real Estate, where you are the owner and you safekeep your own property.
If you are happy with having the responsibility but also enjoying the privileges of owning Real Estate, please reach out to us. We have some juicy high-yielding opportunities for you.
Until the next one!
