Bubble Bursting?
Has anyone been watching the markets this week? Everyone is getting shellaced. I’ve already heard today called “Black Friday” and a whisper that Bank of America’s bond trading desk is down $150 million. The rest of the country has seen their housing market badly injured at best and we have all been holding our breath…
Has anyone been watching the markets this week? Everyone is getting shellaced. I’ve already heard today called “Black Friday” and a whisper that Bank of America’s bond trading desk is down $150 million.
The rest of the country has seen their housing market badly injured at best and we have all been holding our breath knowingthat our market follows the banks….
perhaps you should run for fed chairman, 10am.
with so much indepth and knowledgeable predictions you’ve come forth with, i’m sure you’d be highly qualified.
…and we all know what little or no bonuses means. There is no way that any person is going to work any Wallstreet job for their base salary of $100,000.. A bad year will mean the same bonus as last year for the people that are valuable and cuts for the others as a way of sending a ‘hit the road’ signal to them. And anyone getting lay-off will get a packeage that would make most think they had hit the lottery.
All that said, even with this more realistic picture of how the jobs will be effected, the response will be as though the sky has fallen in.
Wow! Lot’s of comments on this issue.
The short answer is the New York real estate market will be affected in 08 and 09. Why?
Growth in the New York real estate market is mostly depend on the bonuses of the financial sector in New York. The big firms have been hurting due to losses suffered in subprime mortgages (look at Bear Stearns). Mortgage debt is packaged and sold on secondary markets, and no one wants to buy this debt anymore. One of the reasons for the gains in the equity market over the last few months has been because of leveraged buy-outs (private equity companys and banks borrowing large amounts of money to finance mergers & aquisitions). Some big deals this week went soar because of fear of the risk of taking on too much debt. This and the subrpime mortgage fears caused the market moves this week.
The problem is that all these issues are affecting the bottom-line of New York’s big financial companies. Many have already implemented a hiring freeze over the past few months. The result will be little or no bonuses for their employees next year and the year after. In fact, there may even be lay-offs if the markets tumble further.
There has been a sharp drop in treasury yields this week. However, the banks arn’t passing these on to lower mortgage rates because of the fears outlined above.
It’s going to be a rocky road……
I hope that all ends well. I am a sucker for a happy ending.
You both need to take your hands off the keyboard and slide them in your pants for a little calm down time. Better yet, maybe you should get together.
And your hands are trembling as you lift the kool-aid for another swig, 9:09! Glub, glub, glub, Mr. Going Underwater. At least what I own is paid for.
i think that’s your breath your smelling, 6:19.
Touchy, touchy. You can smell the fear. Sell soon or lose your paper gains forever, folks!
Well, since we’ve gone this far off topic, let me fan the “flames” and tell everyone to go to Simpsonizeme.com, where you can upload a picture of yourself and it will, well, Simpsonize you!