“100% secure real estate funds in Germany’s ‘boom regions’…”

After my studies in Berlin, I often had to deal with an East German advertising agency (especially because I am friends with the boss) and one fine day E. (the boss of the East German advertising agency) invited me on a little trip to Berlin-Lichtenberg.
Berlin Lichtenberg/Hohenschönhausen is one of the East German districts that, at least on the map, have moved a little more into the centre of the city since reunification, and the destination of our little excursion was an oval glass-window office building that could certainly have stood in the same way in the centre of Stuttgart, but which a highly intelligent building planner had placed in the middle of the Lichtenberg-Hohenschönhausen district.
The setting itself was quite remarkable, i.e. a prefabricated concrete slab building in the background – actually including an East German tenant in a vest with a beer can on the balcony – and a ruined mirror glass window in the foreground, ruined because the entire shiny high-rise building was completely empty.

Years later, I moved to another ‘boom region’ in Germany, i.e. to the area around the Free Hanseatic City of Hamburg (and ‘Speckgürtel’ is really such a wonderful German word) and here, too, I was constantly confronted with this strange industry as a ‘basically uninvolved person’, both in my family environment and on pretty much all media channels…

And this year (i.e. in the year 2022), it happened that I made fun of a participant in a chat who was obviously professionally roaming the German chat rooms, praising the special view that certain real estate projects in the Free Hanseatic City of Hamburg had to offer…
– and just the other day this very same guy showed up again in this chat room to loudly inform the audience there that he ‘knew me’, “I was this artist”, and he knew that very well, so “that I would drink a bottle of cane a day”, as a “heavy alcoholic”.

Like that.

Now, I have come across such clichéd pigeonholes quite often in the borough of the Free Hanseatic City of Hamburg – in other words, in the whole of Hamburg, the social world is divided quite obviously and starkly into two separate camps – on the one hand, all the successful Hamburg real estate fund managers and social media advertising agency professionals on the one hand, and there the failed cane alcoholics on the other, and only yesterday, at Christmas and with a glass of whiskey in front of the fireplace at a late hour, I thought to myself that it might be time to take action against all this inflammatory fake news…
So: On special occasions, at Christmas for example, I really like to drink a port as an aperitif, and then, late at night, a (good) whiskey in front of the fireplace – but never stout. But of course you’re absolutely right… it’s certainly a case of testimony against testimony.

Do start-up entrepreneurs in Germany’s booming regions actually still need office space these days?

 

First of all, back to Berlin: I told E. (the boss of the East German advertising agency) that I would leave this client and this project alone. And that was because I thought it was absolutely hopeless to actually find anyone in the booming Berlin-Brandenburg region who would rent office space in Berlin Lichtenberg-Hohenschönhausen. For two reasons: Zero demand and a huge oversupply of office space. In the booming Berlin-Brandenburg region.

Furthermore, even back then a million euros a day flowed from the city’s budget into the endless airport construction site, a circumstance that was of course felt at all the fractures of an urban society, especially in the (actual) promotion of the risk-taking high achievers (i.e. the start-up entrepreneurs, for example, who are actually the subject of this discussion…).

It should be noted that I am talking here about the real (civil servant) level, especially in the former GDR districts, but in the end what I have said also applies to the provincial western districts: 

Many provincial capitals that afford art academies (Hamburg, Berlin, Munich, etc.)
draw their financial resources from a very special main source of income.

The most important economic factor of the Free Hanseatic City of Hamburg, for example, is certainly the port, Stuttgart sells high-priced Daimler cars all over the world, Munich BMWs, and the city of Karlsruhe (Karlsruhe Art Academy) is home to the Federal Constitutional Court. 

And in this economic-cultural context, one must bear in mind that Germany’s capital as a “cultural metropolis” is financed primarily from two sources:
Firstly, of course, through tourism (Berlin, Berlin, we’re going to Berlin), i.e. through all the guests from all over the world who spend their money in the hotels in order to experience the city’s ‘cultural offerings* – and in this sense, the two art academies/art universities in Berlin (East and West), which are financed from taxpayers’ money, also have an economic significance – and otherwise through subsidies of all kinds, and by that I certainly mean the Länder financial equalisation scheme, but above all also the so-called borrowing, or, to put it in a different way, in the end also from the institutional proximity to the ‘paper money printing press’.

Now, the city’s cultural sector has in fact been sabotaged in many ways in recent decades (in the real civil servant reality), I think that the dance club, gallery and museum scene, as well as all the rich American tourists, have always been a thorn in the side of the provincial careerists in the respective Berlin offices, i.e. as bourgeois decadent manifestations of the failure of the classless (power-Stalinist) civil servant utopia. 

What I mean to say is that the cultural sector as well as the respective risk-taking entrepreneurs in the cultural sector of the city of Berlin displeased the professional civil service, the political caste and ultimately the neurotic-arrogant judicial system as a financial, but also as a cultural-political power factor long before the Corona pandemic, especially since all of these lifelong careers stuffed all around ended up, precisely because of their proximity to the paper money press, in a culturally and financially completely impoverished, bled dry urban society.
It is only through the ‘crowbar of power’ (Nietzsche), that is, through paper money, that they are able to fully live out their actual system-institutional intoxication with power vis-à-vis the rest of society.

So the lockdowns and club closures, after decades of strangulation and sabotage, have given Berlin’s cultural scene the complete rest, and in my opinion this damage is irreparable, although the city marketing would of course like to give a different impression. 

What is a Ponzi scheme?

 

Ponzi scheme

In the United States, his scam became known as the Ponzi scheme (Ponzi scheme, Ponzi plan or Ponzi scheme). Although it is sometimes mistakenly used as a synonym for the Ponzi scheme,[2] it differs from the latter in several respects. Both systems have in common that the number of participants must increase exponentially in order not to collapse, and that the contributions of new participants cover the profit distributions of the existing participants. The main difference is that in the Ponzi scheme, the source of the profit distribution is known to the “customer” (he recruits them himself), but the originators of the scheme are unknown to him. In contrast, in the Ponzi scheme, the originator of the system is known to each “customer”, while the source of the profit distribution is concealed from him.

A well-known example of the use of the Ponzi scheme in recent times is Bernard Madoff’s investment firm.

Wikipedia: Charles Ponzi

 

I mean, even I am familiar with these glossy brochures that advertise 100% safe, long-term investments with high returns in the booming regions of Germany, which are of course produced by the advertising agencies, and it is precisely the real estate funds that want to save every last cent that like to end up with the East German agencies, and of course the whole issue now becomes questionable in the sense that I now call myself a start-up entrepreneur, which, by the way, is what all these booming brochures peddle at the end of the day, and it is precisely at this point that the dinosaurs (The dinosaurs are getting sadder and sadder) will now naturally wave off,
because first of all: ‘If no Hamburg snob buys your pictures, then you’ll just have to do something else’ (- e.g. go and buy strohrum) and secondly, the founding of a virtual gallery or a web radio station or a virtual art and music club cannot of course be compared with ‘real’ companies that pay real rents for real business premises in the booming regions of Germany – and you’re absolutely right again here – I don’t actually pay high commercial rents.

Translated with www.DeepL.com/Translator (free version)