As 2007 came to a close, the sub-prime credit crunch had devastated Wall Street, the US residential real estate business including the home builders, banks, mortgage companies and other lending institutions. This resulted in well over $300 billion in financial institution and builder company write-offs. While the 2nd half of 2008 may reflect some trend toward eventual stability in the market, high yield investment funds, and private investors will be buying individual "busted" condominium projects and blocks of residential and land assets from the banks, other financial institutions, builders, and private developers for the balance of 2008. Wall Street, the rating agencies, banks, and all financial companies are re-pricing risk, and credit has tightened for the foreseeable future.
FIRST & SECOND QUARTER 2008