HowardReal Estate- From Louisiana to New York (LINK)
August 25th 2007 08:31
We are getting some remarkable reports. Apparently a Federal official had a conference call in Louisiana on the real estate situation. Several prospective home buyers had a mortgage deal with a bank, but then the bank did not actually have the money to do the deal. What a shocker. This is the mortgage freeze up that is going on. The banks can sell mortgages, but they can't resell the mortgages anymore packaged as MBS (Mortgage Backed Securities). So, they can't get their capital back, and the whole thing is seized up. Get it. The real estate machine is essentially over, until we get a bankruptcy reorganization. Over.
New York Real Estate people still think their party will go on. Maybe it will for a while, but New York real estate prices will be forced down to, due to the credit crunch. Of course, the freeze up on mega-deals like Home Depot's sale of a division, are freezing up for related reasons as is the real estate market. The Asset Backed Securities can't be repackaged and resold, like their MBS real estate repackaged cousins.
New York Real Estate people still think their party will go on. Maybe it will for a while, but New York real estate prices will be forced down to, due to the credit crunch. Of course, the freeze up on mega-deals like Home Depot's sale of a division, are freezing up for related reasons as is the real estate market. The Asset Backed Securities can't be repackaged and resold, like their MBS real estate repackaged cousins.
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