Tale of Two Parent Companies [Note: see, “Realogy Bankruptcy Filing Imminent?” (2/12/09) for an update to this post] One of the most popular quotes making the rounds these days is Warren Buffett’s observation about risk: “You don’t know who’s swimming naked until the tide goes out.” Latest addition to the list of naked swmmers? Realogy,...Read More
Tear-down Activity Belies Recession SignalsYes, the Case-Schiller real estate index just showed a record drop, and yes, consumer sentiment as reported by national gauges remains low. And investors don’t need to be told that the stock market remains highly volatile, and down sharply so far for 2008. However, under the category “all real estate is...Read More
Twin Cities Well-Positioned to Harness Wind Power “Wind advocates say that just two of the windiest states, North Dakota and South Dakota, could in principle generate half the nation’s electricity from turbines. But the way the national grid is configured, half the country would have to move to the Dakotas in order to use the...Read More
The Big (and Little) Picture The most bullish housing signal I’ve seen lately is all the attention paid to Nouriel Roubini (The NY Times, The Wall St. Journal, etc.). Roubini, an economics professor at NYU and “perma-bear” known for his dour forecasts, is rapidly emerging as the guru of this cycle (like Abby Joseph Cohen...Read More
Homes Getting Bigger . . . Online I’ve been showing a client 1,500-2,000 FSF houses in several closer-in, city neighborhoods the last few days, and I’ve never seen so many 14 x 18 foot living rooms that look like football fields in the online photos! If you don’t know square feet, that range usually corresponds...Read More
Mortgage Market Upheaval The most significant financial development the last few days — certainly for the housing market — is the accelerating decline of Fannie Mae and Freddie Mac. At $5 and $3.5 per share, respectively, the two so-called government sponsored entities (“GSE’s”) would appear to be caught up in parallel death spirals (both are...Read More
