Wall Street Reorg: Impact on Real Estate?
After a weekend spent huddling together, Wall Street chieftains were unable (or, more precisely, unwilling) to come up with a plan to save faltering Lehman Brothers, which is now expected to file for bankruptcy. Merrill Lynch, which had seen its shares drop along with Lehman’s in recent days, agreed to be acquired by Bank of…
After a weekend spent huddling together, Wall Street chieftains were unable (or, more precisely, unwilling) to come up with a plan to save faltering Lehman Brothers, which is now expected to file for bankruptcy. Merrill Lynch, which had seen its shares drop along with Lehman’s in recent days, agreed to be acquired by Bank of America for close to $50 billion. Meanwhile, questions about giant insurer AIG’s ability to weather its own set of mortgage-related problems continued to mount. My goodness. I’ve been in the business 35 years, and these are the most extraordinary events I’ve ever seen, said Peter G. Peterson, co-founder of the private equity firm the Blackstone Group, who was head of Lehman in the 1970s and a secretary of commerce in the Nixon administration. The big question is whether these moves will increase investor unease or, by removing a few of the major question marks, hasten its recovery. The same can be said for the local real estate market. While many of Merrill’s remaining 60,000 employees will undoubtably be kept on, the same can’t be said for Lehman’s workforce of 25,000; on the other hand, market’s hate uncertainty, and maybe this just helps ensure that New York market is on target to meet Jim Cramer’s projected turnaround date of June 30, 2009.
Two Major Wall Street Banks Falter [NY Times]
Crisis on Wall Street [WSJ]
Photo by huachen
Lechacal: what the Heck are you talking about? I do not Think that The Large Percent of people who live in Cobble Hill, Carroll Gardens, Park Slope and The Heights care about any of this. They have owned there homes for many years some handed down from family members. Others that have bought more recently put down large down payments and care less what happenes.
In the force towards equilibrium of rental prices, Manhattan will be falling. Will Brooklyn continue to rise?? I think so.
Guest: The comparative affordability of Manhattan prices has a huge impact on Brooklyn prices.
In my humble opinion:
1. He who lowers price first will sell first. He who lowers price second will sell at a lower price than the first person. And so on.
2. The real estate market will get worst before it gets better.
3. So if you are a seller, chop your asking price if you want to sell this year. Otherwise wait until next year and chop even more.
4. If you are a real estate agent, you should advise your clients accordingly.
They were removed.
This may not have a huge impact on Brooklyn real estate- but what do you think the impact will be on the Manhattan, and subsequently, the brooklyn rental market? There’s going to be an awful lot of unemployed people in the financial service industries, and not everyone who worked @ Lehman, Merrill etc were millionaires.
wasder-
“Prodigal–while it is true that internet threats rarely can be physically dangerous, don’t you think that this community like any other should have a code of decency that is at least moderately adhered to?”
Yes, 100% agreed.
I just see slippery slopes.
DOW—I have no idea what your last post was supposed to mean. Though truthfully I am glad to see you around. Would like to hear your thoughts on the day’s events.
Can someone point me to the physical threats that What is said to have made? I’ve looked high and low, were they removed?
Ditto, ditto, ‘his affirmation’ – and a little early. Oct. 16 is weeks away. Unless there is something worse coming. Ugh.
I’m thinking Dow8000SP800 may not be too far off either.
Are we going down to 10,000 today? or worse. (She said reaching for the Xanax.)