Bond fund manager on US real estate
Bob Morris @ Apr 21st 2007 08:08 - Category: Credit crisis
Tighter lending standards and increased regulation will change the housing outlook for some years to come. As past marginal buyers are forced to sell their home to prevent foreclosures, so too will future marginal buyers be restricted from buying them.
This is from Bill Gross of PIMCO, they manage over $667 billion in fixed income assets. His conclusion is, the Fed will be forced to drop interest rates substantially to make homes affordable again. If they don’t, home prices will drop 20%. Either way, home prices have peaked and prices will be lower for the next three years. This from a guy who runs huge amounts of money and to whom interest rates are of crucial importance.
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Connecticut Man1 on 22 Apr 2007 at 6:42 pm #
So much for the bush “ownership society”… Another complete economic disaster as it results in the uber rich ending up with poors little piece of the American dream. sigh
Bob Morris on 22 Apr 2007 at 10:10 pm #
Karl Marx has much to say on this issue!
That’s what the ruling class does. Get wealthier at the expense (literally) of everyone else.
real estate glendale on 03 May 2007 at 3:33 am #
I know they are implying industries will use energy more efficiently and hence less of it for the same amount of value generated,