Summit Notebook

Exclusive outtakes from industry leaders

Audio – Bubbles are fun — for awhile

schwartz.jpgSure thing, kids LOVE the bubbles. The blowing, the running around, the popping.

All the things that gives real estate investors and developers fits.

Any simple search on “real estate” in a news story for the past two years would more than likely also mention the word “bubble”. In fact, a quick Google search of “real estate” and “bubble” turned up 998 news stories — in the past month!

At the Reuters Global Real Estate Summit, the problems that have plagued — and continue to plague — the real estate market has been much on the minds of all our guests, including Scott Schwartz, managing director of Marathon Asset Management.

Recognizing the breadth and depth of this real estate trough is critical for Schwartz’s business, but it is also equally key for him to see what’s coming at him down the road.

How did Abby rate her former boss?

abby.jpgAsked to give a letter grade for the performance of U.S. Treasury Secretary Henry Paulson during the credit crisis, Goldman Sachs’ senior investment strategist Abby Joseph Cohen laughed. “I spent several years where he provided a performance review to other people,” she told the Reuters Investment Outlook Summit, about the former Goldman CEO. To find out how Paulson fared in Abby’s eyes, please click here  

   

Is a triple-A a triple-A a triple-A?

   Credit ratings agencies have been under fire from investors for giving the highest ratings for what turned out to be risky assets.
    But Standard & Poor’s President Deven Sharma told the Reuters Investment Outlook Summit investors just didn’t really understand what a triple-A rating meant.
    “It’s a question a lot of people ask: Is a triple-A a triple-A a triple-A?” Sharma said. “We reflected on it and recognised one of the things we didn’t explain to investors as much as we should have done is what comparability of ratings really  means.”
    To listen to what he had to say, please click here

Survival, yes, but what about the money?

Veteran Wall Street banking analyst Richard Bove sees Lehman Brothers surviving – but he doesn’t think they’ll be making a lot of money.
   There’s just not a lot of business there at the moment for brokers like Lehman, he told the Reuters Investment Outlook Summit in New York.
    To listen to a clip of what Bove had to say, please click here

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