rant · moment 10 of 26
Foreign Money, Shell Corps, and Real Estate Laundering
from #188 - Best of Patreon Vol. 1 | The Tim Dillon Show · #188
5 min
Tim explains how foreign capital from Russia, China, and the Gulf props up real estate markets in London and New York through shell corporations used for tax avoidance and money laundering, referencing the Panama Papers.
- New York City is overbuild and lacks sufficient foreign money to prop up high-end real estate values.
- Foreign money replaced domestic capital after the 2008 financial crisis, keeping the NYC real estate market afloat.
- Sixty to seventy percent of new London construction goes to foreign nationals who don't live in Britain.
- Wealthy buyers use shell corporations to purchase real estate, avoiding taxes and laundering money through these transactions.
- The Panama Papers exposed how wealthy people set up offshore financial systems, and the journalist who released them is now dead.
- Wealthy people route money through fictional companies with fake addresses and no employees to dodge corporate taxes.
- At a certain level of net worth, wealthy people access a completely separate financial system with different rules about taxes and accountability.
Panama Papersmoney launderingNew York City real estateprivate equity