U.S. GDP: The Real Estate Economy

26-Feb-2017

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A banker turned social finance entrepreneur. Liu-Yue built and managed two social enterprises. Liu-Yue founded Oxstones Investment Club a searchable cloud-based content platform for knowledge sharing and financial education. Oxstones.com also provides global investors with direct access to U.S. commercial real estate investment opportunities and other alternative strategies. In addition, Liu-Yue also co-founded Cute Brands, Inc. Cute Brands is a cause-oriented character-based brand licensing and social impact fund that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising ultra high net worth clients on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in emerging markets bonds and Latin American equities investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities and special situation investing at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.







By Macromon, Global Macro Monitor,

Interesting data that even surprised us.  The real estate sector is now the largest sector of U.S. economy.   Real estate is a sub-category of the BEA’s  industry group, Finance, insurance, real estate, rental, and leasing.   Could it be one of the many reasons why a real estate mogul now lives in the White House?  

Some inferences from the data:  1)  the U.S. economy is much more diversified than in 1950 and less dependent on manufacturing.   That can be interpreted as good or bad depending on where you sit;  2)  the U.S. is a FIRE economy.  That is,  Finance,  Insurance and Real Estate,  which now exceeds 20 percent of GDP;   3) Agriculture continues to decline as a share of GDP, which is now only 1 percent of the economy.  This may change as “reefer” legalization becomes more ubiquitous and is counted in the official data;  4)  the Federal government’s role in terms of value added to the GDP is shrinking;  5)  State and local governments have almost doubled their share of output since 1950;  and 6)  Professional and business services have almost tripled their output as percent of the economy since 1950.   There are many more.  You decide and analyze.

One last point.  Real estate is all about leverage and, traditionally, highly dependent on credit and lending.

us-economy-by-sector_tablemanufactuing_real-estate_time-seriesus-economy-by-sector_2015us-economy-by-sector_1950

U.S. GDP: The Real Estate Economy

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