Anonymous writes:
So?!
Anonymous | 05.20.08 - 10:58 pm | #

CRead writes:
I guess he didn't actually buy it at the PRICE PEAK since he paid 1.4 B for it and now it is worth twice that.
CRead | 05.20.08 - 10:59 pm | #

ChopperOne writes:
Anyone notice the equity markets, Asia is down, US was down, Europe was down and......

FIRST!
ChopperOne | 05.20.08 - 10:59 pm | #

Elvis writes:
It is Billy Macklowe's fault. Henry was duped by his son. Damn you, Billy, and your childish name.
Elvis | 05.20.08 - 11:02 pm | #

Elvis writes:
If I drop my minimum price $200 million, I'm just like every other panicked seller out there. That is why I will keep my listing price at $350 million for my 3 bedroom house with a partial ocean view. Signed, California.
Elvis | 05.20.08 - 11:07 pm | #

Peterpaul writes:
leverage works both ways...but it works best when you use other people's money and NOT a personal guarantee.

At least he had a chance to teach his son a real lesson!
Peterpaul | 05.20.08 - 11:08 pm | #

Harsh Realty writes:
Labels: ha ha
Harsh Realty | 05.20.08 - 11:12 pm | #

Anon writes:
That sucks.

#1
Anon | 05.20.08 - 11:14 pm | #

Rob Dawg writes:
Millions or billions, they are still knifcatchers.
Rob Dawg | Homepage | 05.20.08 - 11:15 pm | #

Harsh Realty writes:
The deal is designed to rescue Mr. Macklowe from financial ruin
Financial ruin? Puh-lease. His dog probably owns more assets than the GDP of Papua New Guinea.
Harsh Realty | 05.20.08 - 11:15 pm | #

Alec writes:
CRead,

The GM building was bought in 2003 and is not one of the $7.6bn in properties that he is in default over.
Alec | 05.20.08 - 11:17 pm | #

RayOnTheFarm writes:
Steve's iconic glass-cube gonna get a new landlord, eh ?
RayOnTheFarm | 05.20.08 - 11:19 pm | #

Elvis writes:
Alec,
Oh, Alec. It must be tough being you. Being picked on and all.
Elvis | 05.20.08 - 11:20 pm | #

Elvis writes:
GM building = Gigantic Moron building
Elvis | 05.20.08 - 11:28 pm | #

Rob Dawg writes:
This is all left pocket/right pocket stuff. Somebody has $3.6b lying around looking for a quick killing in CRE? More high rollers with OPM.
Rob Dawg | Homepage | 05.20.08 - 11:29 pm | #

Elvis writes:
"Boston Properties Inc., Goldman Sachs Group Inc. and two Middle Eastern investors are in negotiations to buy the General Motors building..."

I think the two Middle Eastern investors are Virginia and North Carolina.
Elvis | 05.20.08 - 11:31 pm | #

CRead writes:
Alec - re-reading the post I get that, now. My post was emotionally skewed by my impatience at waiting for Manhattan prices to drop(the market is just now starting to soften here... a little). Saving $260K for a 20% down payment on a 1000 sq ft box of air takes time but COME ON! I don't need anymore time!!! I almost wish I would have picked up a liar lone a couple of years ago (OK, I do wish I had).
CRead | 05.20.08 - 11:35 pm | #

Elvis writes:
Unbeknowst to the common folk, Harry Macklowe enjoys ocean sunsets and protology exams.
Elvis | 05.20.08 - 11:41 pm | #

Elvis writes:
"Hey, Virginia and North Carolina, this is Eddie Linde at Boston Propeties."

"What up, Eddie?"

"Well. I was just talking to my buddy Hank Paulson, and we want to buy Macklowe's office buildings in NYC."

"Awesome. Are you asking if we want to be included?"

"Yes. We'll play you off as Middle Eastern Arab countries, but the US gov't will actually pay for everything. None of us will pay a dime."

"Awesome."

"You two in?"

"Hell, yes. Thank for thinking of us, Eddie."

"No problem, guys. You wouldn't think that setting up these bailout deals is hard, but it is..."
Elvis | 05.20.08 - 11:57 pm | #

barely writes:
When does THE DONALD go BK? THAT should drive a 10ft stake through the hearts of all the wannabe tycoons. Then it'll be game-set-match.
barely | 05.21.08 - 12:00 am | #

FFDIC writes:
Nice horror story here...
Hedge Funds in Swaps Face Peril With Rising Junk Bond Defaults
http://www.bloomberg.com/apps/ne...xY14& refer=home
FFDIC | 05.21.08 - 12:01 am | #

Elvis writes:
Natalie Portman just won Dancing With the Stars. Beat out the Ewoks and Darth Vader.
Elvis | 05.21.08 - 12:04 am | #

Alec writes:
Elvis, you shouldn't play around with your nembutol dosage; Dr. Nick wouldn't like that.
Alec | 05.21.08 - 12:09 am | #

Allen C writes:
OT...In case this wasn't posted already...

"The Fed was worried about the biggest players in the CDS market, Mason says. ``It was a JPMorgan bailout, not a bailout of Bear,'' he says."

http://www.bloomberg.com/apps/ne...xY14& refer=home
Allen C | 05.21.08 - 12:12 am | #

El Cliffo writes:
By the way, that's the tenth blog post of the day from CR and Tanta. (We're not worthy!)
El Cliffo | 05.21.08 - 12:20 am | #

Elvis writes:
Substitute "hand job" everytime you see "bailout." It is funny if you are a hand doctor.
Elvis | 05.21.08 - 12:25 am | #

Allen C writes:
Sorry FFDIC...I see you posted 12 mins prior.

I don't recall reading a more blunt MSM article on CDSs.
Allen C | 05.21.08 - 12:26 am | #

barely writes:
FFDIC - NICE LINK!! Thank you, kind sir.
barely | 05.21.08 - 12:30 am | #

es writes:
interesting that GS is involved,..they put out an article a couple months ago calling a 20-25% price drop in commercial RE.
es | 05.21.08 - 12:41 am | #

girlbear writes:
just got back to the hotel in Sacramento after meetings with congress/assebmlymen and a CA chamber of comerece lunch and dinner with lobbyists....looks like the Dems are going to control things in the next election (H and senate) and Obama might be your mamma.....Arnold is going to borrow from future lottery money....we are in trouble in CA...
girlbear | 05.21.08 - 12:47 am | #

mp writes:
FFDIC, AllenC- "Hedge Funds in Swaps Face Peril With Rising Junk Bond Defaults"

It seems likely that Meredith Whitney read the new Soros book and detailed the second order effects he's predicting. They're on the same sheet of music.

Anyway, nice work by both of them.

To paraphrase Neil:

Got toilet paper?
mp | 05.21.08 - 12:58 am | #

Tim writes:
Can anyone please explain the connection between the bond insures the CDS market.
Tim | 05.21.08 - 1:07 am | #

Anonymous writes:
``I can't see signs of a recovery in banking,'' said Yoji Takeda, who helps manage the equivalent of $1.1 billion in Asian funds at RBC Investment (Asia) Ltd. in Hong Kong. ``Banks will probably have to build up provisions for loan defaults as Japan's economy will likely remain bearish for at least this year.''

The Nikkei 225 Stock Average dropped 279.21, or 2 percent, to 13,880.88 at the 11 a.m. break in Tokyo. The broader Topix index fell 34.58, or 2.5 percent to 1,365.26, set for the sharpest drop since April 14.
Anonymous | 05.21.08 - 1:08 am | #

tj & the bear writes:
Got toilet paper?

We all do. They're called Federal Reserve Notes.
tj & the bear | 05.21.08 - 1:13 am | #

Mr. Beach writes:
Off topic, but funny. Apparently Mozilo still has something to say around Countrywide. He accidentally hit "reply" to a borrower's email asking for loan modifications.

Perhaps the loan modifications that Bernanke so desperately wants are not going to be so forthcoming.

His response to the request: "This is unbelievable," Mozilo said in his e-mail. "Most of these letters now have the same wording. Obviously they are being counseled by some other person or by the Internet. Disgusting."

http://www.latimes.com/business/la-fi-mozilo21- 2008may21,0,3064002.story
Mr. Beach | 05.21.08 - 1:35 am | #

neil writes:
tj & the bear writes:
Got toilet paper?

We all do. They're called Federal Reserve Notes.

ROTFLMAO

Oh wait a second, I remember reading about the Wehmer Republic... :(

Got Popcorn?
Neil
neil | Homepage | 05.21.08 - 1:42 am | #

EEngineer writes:
Isn't a 'Daisy Chain Vortex' unwind what wiped out a bunch of Llyod's of London "Names" about a decade ago?



Scarier than any campfire story I ever heard as a kid. I guess that's the power of stupid...
EEngineer | 05.21.08 - 1:49 am | #

RE writes:
Comment by London Banker at RGE

Central Bank as the “Market-Maker of the Last Resort”

"... Many thanks, Takeo, for responding to my objection to the Fed as SuperSIV, or "market maker of last resort". I think what bothers me most is that it isn't even last resort, but almost first resort as soon as the assets couldn't be floated in the financial markets as under the conditions prevailing to Q3 2007. The Fed acted very, very quickly to liberalise so as to provide 85 percent monetisation against face value, without any of the consultation and debate that attends most changes in regulation or market operations.

As you say, Fed has also slashed interest rates to negative return territory, driving down the dollar and discouraging foreign creditors from financing future deficits or inflows to recapitalise fragile banks. That is going to make the crisis worse in the not distant future.

I get the feeling that we are in a manufactured calm, where the Fed has poured what oil it has on the water to provide the illusion of tranquility. Meanwhile those in the know will be preparing for the return of turbulence.

Meanwhile, we are beginning to see some segmentation of policy between the Fed and Bank of England. Mervyn King is obviously frustrated with the poor response to his calls for recapitalisation of banks and improved supervision by the FSA. He has stated pretty baldly that he does not expect to cut interest rates anymore with inflation rising steadily, even if it means "one or two" quarters of negative growth. He has also said bluntly that Britons should expect a lower standard of living with higher inflation, lower earnings and tighter consumer and mortgage credit. "
RE | 05.21.08 - 1:51 am | #

mock turtle writes:
"The deal is designed to rescue Mr. Macklowe from financial ruin, but it isn't clear that this transaction would resolve his debts."

oh please stop it i'm gonna cry

NOT

those who live by the leverage die by the leverage
mock turtle | 05.21.08 - 2:00 am | #

Blitzer writes:
Re: "Drivers looking forward to road trips this holiday weekend will find no relief at the gas pump. The national average price for a gallon of regular gasoline is now $3.80 on the nose, according to AAA and the Oil Price Information Service, meaning gas prices are up about 19 percent from this time last year. Diesel jumped to a record $4.54 a gallon."

his is Bernanke positive inflation versus oil price shocks and this is obviously stagflation; Ben is printing money as fast as the presses can run and as the dollar is pushed down in value, oil is spiking in a stagflationary tsunami.

Any retard who thinks a 200 point drop on wall street, better wake up to the reality of a 2000 point crash!
Blitzer | 05.21.08 - 2:46 am | #

Blitzer writes:
Cancel that last post, ok, needs some grammer work....LOL
Blitzer | 05.21.08 - 2:47 am | #

pd130 writes:
Do you find yourself dreaming nightmares of batteries of sousaphones playing that awful round from The Birds? Of missing your South Ferry stop, speaking of batteries, and roaming Manhattan endlessly round and round in the subway? Are you easily hypnotized when you eat spaghetti by the twirling of the noodles on your fork, unable to stop until all of it has formed a two-inch wide helix on the tines?

Then I'll bet you had the same thought Mr. Das has had, maybe even back when the smart boyz were saying the swaps would all clear up in the wash, and you haven't been quite the same since.

"The risk keeps spinning around and around in this daisy chain like a vortex."

But his next sentence after that: can he mean that literally?!!
pd130 | 05.21.08 - 4:52 am | #

sterlingerl writes:
Moody's says "Oops, my bad!"

http://www.ft.com/cms/s/0/ 0c8256...0077b07658.html

"...Internal Moody’s documents seen by the FT show that some senior staff within the credit agency knew early in 2007 that products rated the previous year had received top-notch triple A ratings and that, after a computer coding error was corrected, their ratings should have been up to four notches lower..."
sterlingerl | 05.21.08 - 5:22 am | #

pd130 writes:
Was just headed over with that.

Hang on to your butts.
pd130 | 05.21.08 - 5:24 am | #

central_scrutinizer writes:
FFDIC, there's a rumor goin' round on ticker forum that Indy Mac is going bankrupt soon ...

IMB a goner?
central_scrutinizer | 05.21.08 - 6:45 am | #

GaudiaRay writes:
"after a computer coding error was corrected, their ratings should have been up to four notches lower..."

Did they mean four notches higher?
I'm sure this is a misprint.
GaudiaRay | 05.21.08 - 7:33 am | #

kett82 writes:
Dear Mr. Blitzer

You are right...decreased value of the U.S. dollar is directly related to price of oil. Since OPEC prices in dollars, they will pass any drop in value of our currency back to us.

Odd to me, that we think that we can debt finace our way out of a debt crisis.

Oil has hit $130 a barrel this morning.

Mr. B now has the conundrum on his hands that so many spoke of during the Greenspan years. Of course, now the leverage is working the other way. Massive external and internal debt loads are weighting on our economy. At laugh at some of things said back then…it is so mysterious…why are these foreign savers taking our dollars…dark matter…of course it is a bitter laugh.

Best regards,
kett82 | 05.21.08 - 7:43 am | #

12th Percentile writes:
If anyone is interested in Macklowe's long and sordid career, this is a good place to start.
12th Percentile | 05.21.08 - 8:38 am | #

sterlingerl writes:
OT - UBS sells its subprime debt to BlackRock at a deep discount AND lends them the money to take it. Huh? Is that like, "please, please, take this off out books, we'll even give you the money to do it...". After the last few months I am officially not shockable any more.

http://ftalphaville.ft.com/blog/...for-steep-loss/
sterlingerl | 05.21.08 - 8:49 am | #

awgee writes:
"Now that's a knife!"
awgee | 05.21.08 - 9:54 am | #

dunham writes:
The GM building is a spectacular building - the definition of a trophy asset.

$2.8 billion is probably overvaluing it by $500-$700 million, depending on what cap rate you use, but there is a premium for an asset like this.

I'm not sure that they'll be able to fill the building with $200+ rents unfortunately, not in this environment, and not with hedge funds exploding left and right.
dunham | 05.21.08 - 12:18 pm | #

jim writes:
I think there is a bris coming for Harry and Shakey the Mohel is going to do it!
jim | 05.21.08 - 6:37 pm | #