Posts tagged buying

Question by The fed up matthew™: Will big bankers enjoy buying all the commercial real estate at rock bottom prices?
‘Extreme Caution’

Ross, the 71-year-old chairman and chief executive officer of WL Ross & Co. LLC, said in an interview on Bloomberg Radio that he would use “extreme caution” before putting money into commercial real estate, especially office space, because properties are losing tenants.

U.S. office vacancies hit a five-year high of almost 17 percent in the third quarter, while shopping center vacancies climbed to their highest since 1992, according to the property research firm Reis Inc.

“I think it’s going to take quite a while to work itself out,” Ross said.

As of Oct. 15, Ross said he had spent less than 0 million of at least .5 billion available to him under the Public-Private Investment Program, an investment pool of private and government money for purchasing distressed assets from financial institutions.

Ross used the funds he spent so far to purchase residential mortgage-backed securities, he said in a Bloomberg Television interview.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aoRYl03Rw1_g

So why wait to spend the money? Are they actually waiting for a collapse so they can get the property cheaper and with government help to top it off?

Best answer:

Answer by Liberal AssKicker
Um, but wait a minute…

…when loans go into default, don’t banks lose?

Know better? Leave your own answer in the comments!