Don’t think the housing market is a big deal?

"Oh yeah, it’ll come back. There’s nothing wrong with it. Just a little dip then it will roar back."  -Californian on the real estate market.
From a Reuters article tonight:
"Bear Stearns Cos. Inc said in a letter to investors on Tuesday that it would provide up to $3.2 billion in financing for its High-Grade Structured Credit Strategies Fund. A copy of the letter was obtained by Reuters. Sources familiar with the funds said the net asset value for that fund is about 9 cents on the dollar. Market participants said the Bear Stearns news underlined the extent of the problems plaguing the subprime sector, which caters to people with poor credit histories and has been stung by rising defaults."
NovaStar and Bear Stearns are not isolated incidents people. The CDO market will make LTCM look like a joke. If we had rising wages and slightly lower consumption levels, I’d say that the sub-prime market had a shot. But we have neither of those, so it’s doomed. Friggin’ doomed.

About diqster

r to the hizzle
This entry was posted in Markets. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s