6 Comments for this entry

1. jan-martin feddersen says:

   August 31, 2007 at 3:15 AM

   Lone Star Cuts Offer for Accredited to $214 Million

   http://www.bloomberg.com/apps/news?pid=20601087&sid=aJdmqFBVFZoA&refer=home
2. AustrianEconomist says:

   August 31, 2007 at 3:30 AM

   Bush on August 9: “No government bailout”

   http://www.foxnews.com/story/0,2933,292716,00.html

   “Bush said that people who lose their homes should receive “enormous empathy” from Americans, but he is confident the housing market can help people refinance many loans and government interference is unnecessary. He also suggested that people become more financially literate before diving into a large loan.

   But the president ruled out any bailout of homeowners hit with foreclosures in the form of direct assistance.”

   Bush now: “Bush to Expand Government Role to Deal With Subprime”

   http://www.bloomberg.com/apps/news?pid=20601087&sid=aqd.EXfD4wcY&refer=home

   “President George W. Bush will today announce steps the administration says will help people with subprime mortgages keep their homes”

   This flip-flop will eventually cost American taxpayers billions of $…
3. metroplexual says:

   August 31, 2007 at 6:49 AM

   MOre on the bailout.

   http://ftalphaville.ft.com/blog/2007/08/31/6961/oh-no-a-bush-bail-out-is-planned/
4. John M. says:

   September 1, 2007 at 6:26 AM

   twist -

   Sorry to pass this on before you’ve had coffee, but …

   “Experts: Word on a housing rebound is wait”, by David Madrid, Arizona Republic, August 31, 2007.
   

   While home sales in most of the Southwest Valley have declined when comparing July 2006 numbers with July 2007 sales, there is confidence among real estate and housing experts that the market is correcting itself and rebounding.

   “People are looking at the idea that the market will recover in three to five years, and what were once the hot areas will become hot areas again,” said Jay Butler, director of Realty Studies at Arizona State University’s Morrison School of Management and Agribusiness.

   “So if you’re an investor or whatever, you may move into some of these areas because they offer a sort of attractive play, not over the next year or two but over the next four or five years,” Butler said.
5. John M. says:

   September 1, 2007 at 8:00 AM

   Jan-Martin -

   If I recall correctly, the “four little piggies” affair, where 4 banks borrowed “largely symbolically” $500 million each from the discount window is now generally regarded as a smokescreen for one or two of the players really needing the loan.

   The following could be continuing the trend. Could that computer glitch be a bit of sleight-of-hand for Barclay’s really having no other choice? [Igor says, "libor." That's cute.]

   “£800m hedge fund bail-out adds to City’s jitters over Barclays”, by Richard Wray and Ashley Seager, Guardian, September 1, 2007.
   

   Barclays, however, stressed it was not facing financial difficulties. It said its decision to borrow from the Bank of England – at a penalty rate of interest – was due to a technical hitch, and the bail-out of the Cairn Capital fund was unrelated.
6. twist says:

   September 1, 2007 at 1:02 PM

   John-

   I’ve never understood Butler’s recommendations:

   
   

   They offer a sort of attractive play, not over the next year or two but over the next four or five years.

   If they aren’t attractive for the next couple of years, why wouldn’t I INVEST IN SOMETHING ELSE for the next year or two? Then when the ROI in RE outperforms my current investments THEN I buy.

   I realize that my attitude will not help pay commissions or salaries in RE, but my bottom line will look better!

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