Real Estate Weekly: Lots of short sales, but they are taking a lot longer to get done "MarketWatch e-Newsletter" email@example.com
Well, did I say so long time ago?
As long as Obama and Gaithner keep saying they are going to buy bank's toxic notes, there is no incentive for a banker to speed up REO sales, let alone short sale. In the past week, I have observed that in some area there is no new REO listing. If there are new listings, the price is going north.
Some banker friends told me that there has been a rumor. They said Gaithner proposed to buy those notes at 70% discount. What do you think? My answer to them is use your brain to say "no such luck" as Keynes said to a crowd of reporters.
Last Update: 4:07 PM ET Mar 27, 2009
WASHINGTON (MarketWatch) - Top banking CEOs emerged from a Friday meeting at the White House with President Obama saying that they are on board with the administration to do whatever they can to get the economy back on track, but that they remain anxious to pay back government investments in their firm's and end their direct ties with Washington.
Chief Executive Jamie Dimon told CNBC Friday that J.P. Morgan Chase & Co. is looking for guidance from the Treasury Department about when to repay money the bank got last year from the Troubled Asset Relief Program. He also noted that Wall Street compensation practices "went too far" and that banks made a lot of mistakes in this area.
Dimon and chief executives of several other top U.S. banks made the pilgrimage to Washington Friday for a noontime meeting with President Barack Obama to discuss ongoing risks to the financial system and a new regulatory framework.
Don't take a reporter's writing at its face value. Why those bankers went to see Obama? What they are trying to accomplish?
We as VSP have no chance as those VIP to sit in at the dinner party at White house so that we don't know what they ate. But we have a nose to smell the air to figure out what they exactly ate: a prime rib, fish or lobster, right?
We are not stupid; and we will see what comes out very soon: to insure their note position or to benefit the whole economy.