Good morning everyone. I hope a restful and enjoyable long weekend was had by all. While holiday weekends are traditionally slow, this week could prove to be rather interesting. While the stock market is up impressively this morning there are a couple of issues on the horizon which could have an impact on our local real estate market. Most notable is the issue of credit ratings for bond insurers. Many states are requesting the break-up of large bond insurers to jettison the sub-prime portion of their businesses in order to maintain the triple A ratings on the bonds, prime, and Alt-A mortgages that they guarantee. Such a move would shore up confidence in these ratings agencies. Should such moves not be adopted, the ratings of these agencies could be reduced, which would increase borrowing costs, and could have a cascading effect which could lead to a another round of multi-billion write-down by large banks. The situation is fluid and I will keep you posted as developments dictate.
Lots Of New Buildings Needed To Keep NYC Competitive (NY Post)
Off Track Betting Shuting Down? 1500 Layoffs? (NY Sun)
Wealthy Blacks Rile Some In Harlem (NY Times)
World's Most Expensive Rental Markets, NY 4th (Forbes)
Mortgage Insurers Face Difficulty (WSJ)
Rumored $196 Million Sale At One Hyde Park, London (Luxist)