McKinsey: CRE in Spain, US, UK at Highest Risk of Deleveraging
January 20, 2010
McKinsey has put out a quick and dirty read entitled “Debt and Deleveraging: The Global Credit Bubble and Its Consequences”. In it, they detail how current leverage within the financial system compares to historic numbers and the massive run-up that occurred during the majority of this decade. The entire report can be accessed by clicking [...]
Read More >>Dubai World Strategically Defaults
November 27, 2009
The Chairman of the “Supreme Fiscal Committee” has indicated that the default of Dubai World was carefully planned. This really is not surprising. As somebody who was in Dubai last year, and saw the hundreds of hollow buildings and the construction up close, it really is not surprising that the party has come to an [...]
Read More >>Starwood Gets Corus; Pays 60 Cents on the Dollar
October 7, 2009
A group led by Starwood Capital and TPG Partners officially won the auction for the Corus Bank assets. It was reported that the group paid about $500M more than the nearest competitor for the deal, which raised some eyebrows. The deal has investors putting in about $550M for a 40% stake in a company that [...]
Read More >>Debt Outlook for UK Turns Negative; US Next?
May 21, 2009
The S&P issued a negative outlook on the debt of the UK yesterday to negative, from stable. A few months ago I wrote a post slash rant about the UK being the world’s largest Ponzi scheme for having so much external debt in relation to their UK. It now looks like all the borrowing is [...]
Read More >>Go Home
March 4, 2009
“Never before have the benefits of cooperation been so far reaching”…. oh yeah, benefit for who? Somebody needs to send Gordon Brown home. The UK is on a road to disaster and this guy want the US to drive them there. The reality is that the economy of California alone is on par with that of [...]
Read More >>UK World’s Largest Ponzi Scheme
February 28, 2009
Despite how bad many may think the US economy is – and it is bad – the USD is still holding its own against other currencies (for now), and foreigners for the time being still continue to purchase our debt. In fact, in relation to some other western countries, the US is holding up fairly [...]
Read More >>European Commercial Market Down But Opportunity Remains
September 21, 2007
The US subprime mortgage crisis, softening demand for housing, and more attractive prices for US REITs didn’t take long to affect REITs in Europe. The Wall Street Journal reports that European commercial real estate share prices dropped by 11% in the second quarter. During this time the cost of credit swaps increased 63 basis points to [...]
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