johnthebear

Wall Street Breakfast: Must-Know News

The Wall Street Journal reported that General Growth Properties and Simon Property Group are planning to sell shares to raise cash, which would dilute current share holders value. This is comparable to a recent experience in England. The press reported that cap rates in England were lower than mortgage rates and the REIT was forced to sell shares to raise cash for redemption's.

In looking at the balance sheet of Simon Properties, the long term debt was reported to be $19 billion in real estate which was financed with $17 billion in long term debt. I question the terms of the long term debt. It has been reported that 59% of the mortgage debt for commercial properties was interest only! Further raising doubt is the report by Mood's that the loan to value ratio was typically 110% or more.

So, the reason for the sale of shares may be that the interest only loans at substantially interest rates have caused a problem for Simon.

The Problem with Diversification

Looks like a scary Monday Open for all the world exchanges.

The Big Whoosh: Is This The Beginning?

Say Herb, do you have a sad picture of yourself for these sad times? I know you are not having fun, unless your short or playing SRS or FXP and GLD like I am.

The Big Whoosh: Is This The Beginning?

Our financial markets are run by a gang of fools. The bigger they are, the more foolish they become. (C, BAC, WM, Countrywide, freddie etc) It really looks like we have done it bad this time.

Unless there is a bailout to put a floor on the mortgage mortgage market, there is no bottom.

I hate to think about bailouts, and it hard to define the terms, who should be helped and who should be allowed to die on the vine is a big question. It seems to me that those who have the best potential to recover should be helped, but those who really jumped in whole hog and invested in the flip notion should not be helped in any way. So investors take the hit, honest hard working Americans should be given a helping hand. It is hard to figure how to deal with the mortgage reset question that is hidden in small print and not explained to the borrower. That is the rub. I really would like to help those poor slobs who won't read the fine print, but how?

The trick is to encourage banks to exend the helping hand to the right profile and not play politics, so that there is enough money to go around. Only then can there be a bottom to the mortgage mess.

Lets face it, this problem will lead to a depression of major scale and it could last 10 years (1929-1941)?

2008-2018?

The Bailout's Pathetic - Here's Who To Blame

Our financial markets are run by a gang of fools. The bigger they are, the more foolish they become. (C, BAC, WM, Countrywide, freddie etc) It really looks like we have done it bad this time.

Unless there is a bailout to put a floor on the mortgage mortgage market, there is no bottom.

I hate to think about bailouts, and it hard to define the terms, who should be helped and who should be allowed to die on the vine is a big question. It seems to me that those who have the best potential to recover should be helped, but those who really jumped in whole hog and invested in the flip notion should not be helped in any way. So investors take the hit, honest hard working Americans should be given a helping hand. It is hard to figure how to deal with the mortgage reset question that is hidden in small print and not explained to the borrower. That is the rub. I really would like to help those poor slobs who won't read the fine print, but how?

The trick is to encourage banks to exend the helping hand to the right profile and not play politics, so that there is enough money to go around. Only then can there be a bottom to the mortgage mess.

Lets face it, this problem will lead to a depression of major scale and it could last 10 years (1929-1941)?

The Bailout's Pathetic - Here's Who To Blame

Our financial markets are run by a gang of fools. The bigger they are, the more foolish they become. (C, BAC, WM, Countrywide, freddie etc) It really looks like we have done it bad this time.

Unless there is a bailout to put a floor on the mortgage mortgage market, there is no bottom.

I hate to think about bailouts, and it hard to define the terms, who should be helped and who should be allowed to die on the vine is a big question. It seems to me that those who have the best potential to recover should be helped, but those who really jumped in whole hog and invested in the flip notion should not be helped in any way. So investors take the hit, honest hard working Americans should be given a helping hand. It is hard to figure how to deal with the mortgage reset question that is hidden in small print and not explained to the borrower. That is the rub. I really would like to help those poor slobs who won't read the fine print, but how?

The trick is to encourage banks to exend the helping hand to the right profile and not play politics, so that there is enough money to go around. Only then can there be a bottom to the mortgage mess.

Lets face it, this problem will lead to a depression of major scale and it could last 10 years (1929-1941)?