jgalt

A Very Cheap Shot on the WSJ Editorial Page

The WSJ article what right on target. No one in government contemplated what would happen when the asset values backing the quasi government backed paper went down. The agencies should be privatized. Gigot is correct when he points out that all the advantages went to investment banks and the horrendously overpaid senior management of the agencies. A scam was perpetrated on taxpayers and another monster contingent liability was created.

Credit Downturn Hits the Malls

Completely agree, cap rates have been compressed to ludicrous levels, now spreads are back up on cmbs executions and the result is either negative leverage or a lot of equity with sub-treasury yields. Prices have to adjust.