The first phase of the boom has already taken place, the pullback seems to have run its course and Phase II is set to deliver fortunes.
Brokers, placement agents, middle men, promoters, consultants, financial intermediaries…call them whatever you wish. They have existed in the financial space since man invented a way to exchange one thing of value for another.
Sam Zell: "This is a very treacherous market," thanks to the giant tsunami of liquidity, "the problems of 2007 haven't been dealt with," and given the poor macro data and earnings, "we are suffering through another irrational exuberance," leaving the entire CNBC audience speechless when he concludes, "the stock market feels like the housing market of 2006."
- Italy rejects need for EU control (FT)
- ‘Worst US quarterly earnings since 2009’ (FT)
- Chinese firm helps Iran spy on citizens (Reuters)
- World Bank cuts East Asia GDP outlook, flags China risks (Reuters)
- Foxconn factory rolls on in spite of strike (China Daily)
- Economic recovery ‘on the ropes’ (FT)
- Japan Tries Cars That Make the Mini Look Maxi (Businessweek)
- Euro Finance Chiefs to Give Positive Greece Statement, Rehn Says (Bloomberg)
- Romney attacks drones policy (FT)
- Euro zone mulls 20 billion euro separate budget (Reuters)
- Hong Kong’s Leung Seeks Turnaround With Economy Focus (Bloomberg)
- RBA Keeps Some Documents Private in Securency Bribe Probe (Bloomberg)
- India Inflation to Remain at 7.5%-8% Till Early 2013 (WSJ)
"QE-whatever has created artificial numbers that the underlying won't support" is how Sam Zell sums up his view of the Fed's actions, adding that the Dow should be more like 9000, not 14000. The typically optimistic bottom-feeding real-estate magnate says he is not buying here, is gravely concerned about liquidity needs, and in his assessment "everything is massively too expensive." This epic CNBC interview-fest, where the less-than-cheer-leading Zell was allowed to speak, includes his views on a pending recession (as he sees capex planned projects being delayed) and while trying not to play the political card too strongly, he asks that we "stop this class warfare crap" and that the animal spirits are unleashed - as the game is being stacked against him. "We're kicking the can down the road... and with QE, there is now too much capital chasing too few opportunities - even when nobody has confidence in the future!"
Not very, I presume. Until shareholders see real dollars flowing back to the extent that dividends can be materially boosted, keep hope alive...
In this respect, the war being waged against Greece by the European Central Bank (ECB) may best be seen as a dress rehearsal not only for the rest of Europe, but for what financial lobbyists would like to bring about globally.
Reggie Middleton’s Real Estate Recap: As I Have Clearly Illustrated, It’s a Real Estate Depression!!!Submitted by Reggie Middleton on 05/25/2011 12:14 -0500
I called it the coming RE Depression in 2007! I put MY money where my mouth was and sold off all of my investment real estate. I put YOUR money where my mouth was and shorted all that had to do with real estate (REITs, banks, builders, insurers). I called almost every major bank collapse months in advance. I warned the .gov bubble blowing does not = organic economic recovery. Now I'm saying we need to, and will, continue what's left of the crash of 2009, with ample global company. There will be no RE recovery this year, and there will be a crash. OK, you heard it here!
The “American Realist” Says: Past as Prologue – Re-blown Bubble to Pop Before the Previous Bubble Finishes Popping!!!!Submitted by Reggie Middleton on 05/18/2011 10:39 -0500
Last night, I spent an interesting time with the esteemed and world reknown macro economist, entrepreneur, NYU professor and strategist, Dr. Nouriel Roubini. Nouriel is a very, very bright guy. He has to be, he agrees with many of my viewpoints :-) On a more serious note, this article is the first installment of the valuation of real world, real assets and properties that are actually up for sale. I plan to walk my readers through the potential absurdity that is investing in a bubble that has not finished popping.
Morgan Stanley's real estate division hits yet another home run in (in fees) as investment clients get (literally) taken to the bank.
Strong Advice For Big Bank Management in Dealing With the Increasing Influence of Blogs and New MediaSubmitted by Reggie Middleton on 10/29/2010 08:34 -0500
A note to those banks that have blocked the access to popular blogs. Wall Street has been BLINDED by the “revenue at all costs” mentality! These deals, products, services and structures are a lot more than potential bonus checks and wide girth swinging dick bragging rights! They are life lines for the mentally disabled, widows retirement funds, potentially life saving programs for AIDS victims, domestic abuse victims, orphans, etc. Hey, I’m all for making money (a lot of money even), and I know that in order for you to make money someone else has to lose it, but there must be boundaries drawn. Attempting to block employees access to my blog (in vain) does little to improve things...
- It's Time for a 21st Century Gold Standard (Fox)
- Foreclosure Furor Rises; Many Call for a Freeze (NYT)
- IMF chief warns on exchange rate wars (FT)
- IMF Cuts U.S. Growth Estimates as Consumer Spending Languishes (Bloomberg)
- As predicted on these pages about 2 weeks before everyone else, Wall Street downbeat on bank earnings (FT)
- The Recipe for Collapse (Of Two Minds)
- U.S. praises Japan PM over China row, stresses ties, (Reuters) and picks wrong side of conflict
- Retailers' Holiday Hinges on Discounts (WSJ)
- Whitney Falters in Trying to Repeat Success of Citigroup Call (Bloomberg)
So, Mr. Private Equity Fund Man says, "Give me $10 in order for me to lose you $8, and I'll give you $2 dollars back for your inconvenience." Am I in the wrong business or what?
The Conundrum of Commercial Real Estate Stocks: In a CRE “Near Depression”, Why Are REIT Shares Still So High and Which Ones to Short?Submitted by Reggie Middleton on 07/01/2010 05:32 -0500
Many people have asked me how SRS and REITs share prices can defy gravity the way they have given the abysmal state of commercial real estate (CRE). Well my opinion is that the equity and the debt markets have allowed agent and principal manipulation to the extent that it materially distorts and interferes with the market pricing mechanism.
How many ways can a Wall Street Banker bend over an institutional client before they scream "ouch"??? Let me count the ways (with a spreadsheet, may I add)...