What do the five buildings below have in common:
If you answered these are the 5 San Francisco office towers which, top tick mogul Morgan Stanley bought at the very peak of the housing market from Blackstone, and just abandoned earlier today, you win 10 shares of Federal Reserve Capital LLC, (the 33 Liberty Strategic Onshore Value Loss Fund). Bloomberg reports that these buildings have lost half their value since 2007. So mark that equity zero MS, and please let your investors know just how many more billions in CRE writedowns you expect, even as you recommend investors buy various CMBX tranches. Lucky for you, your traders are just as good at convincing witless long-only rally monkeys to buy assorted securitiziation tranches, as your Real Estate investment banker "experts" are good at destroying shareholder value. CMBX 4 chart below:
Look for this chart to eagerly retrace its wides from March of 2009 as more and more firms realize that 6.5% cap rate they keep hoping for just ain't gonna come, no matter how much crap Bernanke buys.