Housing Doom

i guess i’m missin something. can anyone explain to me why these are possibly securities and what the SEC has to do with buying a condo? how are the properties they’re discussing different from the condo down the street from me that I always beleived you purchased in the same manner as a home? just curious.

AZSaluki-

I believe [And someone please correct me if I'm wrong] a condo-tel contract is different than a normal purchase.

I went to the City Center sales office in Las Vegas and talked to a salesperson about purchasing one of these units.

You cannot personalize your unit at all, [At least at City Center] as your condo is a hotel room when you aren’t there. You get a closet you can lock when you’re gone, but everything from the art to the silverware is dictated by City Center. They also have daily maid service. [optional]

So for all practical purposes, you are purchasing a hotel suite rather than a condo, although there are no guarantees on how often [or if ever] your unit will be rented out by the management. Consequently, there’s a case to be made that you are investing in a hotel, rather than buying a condo- even if you never manage to rent out your unit. I believe this is what they are referring to.

Finally, I’m starting to see blips here and there about the Las Vegas condos. As a LV resident, it just appears business as usual, although, I sure don’t see any patio furniture on the thousands of new balconies scattered around town. If you tried to access a balcony at Trump Towers, you’d slide down the side to your death as they don’t have windows, balconies, character, appeal….I’ve been wondering about them. And yet, when I drive down the Strip, I still see the construction worker-bees buzzing here and there, just doin-their-job, not a thought in their head.

John- [#5]

My understanding of this song is that Boston didn’t want to raise the 10 cent fare- so they charged 10 cents to get on- and another 5 cents to get off. Charlie didn’t have the nickel. : )

John-

L sent me a link on that, and I about choked.

Their CEO John Mack said last April that “The collapse of the subprime market in the United States has reached its eighth inning or maybe the “top of the ninth.”

I guess the game has gone into extra innings.

I know Igor- I’m “annoyed” too.

twist (#10) -

Here’s come the MSM grownups, trying very hard to keep a straight face.

“Morgan Stanley to Advise U.S. on Fannie and Freddie”, by Louise Story, New York Times, August 5, 2008.

The United States Treasury has hired Morgan Stanley to provide advice on the future of Fannie Mae and Freddie Mac, a government spokeswoman said Tuesday.

The Treasury is evaluating how and whether to use its authority over the two government-backed mortgage giants. Congress included a provision in a housing bill last month allowing the department to spend hundreds of billions of dollars to rescue the mortgage giants if they reach the brink of collapse. The Treasury can purchase equity in the troubled companies or lend to them, if needed.
…

“As we’ve said before, we have no plans to utilize the temporary authorities,” Ms. McLaughlin said. “That has not changed. This action should be interpreted as a prudent preparedness measure, and nothing more.”