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FBI on Wall Street! Where have they been?

By
Real Estate Agent with Re/Max Real Estate Limited

The FBI is now investigating the major Wall Street firms, to see if fraud was involved in the handling of their businesses in mortgage back securities, real estate and related matters. This is what we all knew was coming. I hope that the powers to be in the federal government can solve the mess we are in to get back our markets. Restitution, if and when wrong doing is found should accompany the prosecution of wrong doers.

Congress needs to stay the course and get this bailout over. It is being said by many that if they prop up this market and get real estate back on its footings, the government may event profit from their investment. The under laying real estate values may improve as people feel more confidence. There are assets, that no one knows their value, due to the complexity of their documentation. It will take time to unwind, while the market has a chance to regroup and regain some of its value.

Many real estate buyers are extremely worried about all that is going on. They are justified in their fears. However, the best deals are made in disarray. We prove this in the 1989-92 period, the deals that were bought then by my clients have never been seen again. The Savings and Loan bail out did this. It made many of my clients very wealthy by giving them huge discounts on great properties.

Congress will give the money to get the system on track, the sovereign wealth funds are ready to buy our real estate. When they do, with all this money pumped into the market look out!

 

Richard

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Comments (1)

The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Agreed !  Every day has a twist and a turn... but it looks like things are unfolding into a bottom per se and perhaps one of the best times to invest in real estate in a long time !

Sep 24, 2008 12:24 AM