Wednesday, April 29, 2009

Bullish News On Real Estate, Out Of Milken Conference

Lew Ranieri, who made a billion dollar fortune off the S&L real estate collapse in the 1980's and who is known as the "father of mortgage securities", told the Milken Conference in a breakout session:
I'm actually very enthusiastic about housing. I haven't said that in five years. … Not only are we within shouting distance of a bottom, we are standing at the beginning of an amazing brave new world. … Affordability has never been this good.
Regarding the Fed's keeping rates below market rates, Ranieri said:

What you're doing is creating one of the greatest wealth transfers we've ever seen. … A large portion of consumer wealth that was destroyed by the housing collapse is being reset … at the cost of bondholders, at the cost of taxpayers
Ranieri is a major league insider and thinks everything the Fed and the Treasury are doing to prop up the markets are just great, but he does know real estate, and what he is saying falls in line with what I'm detecting about real esate and the overall economy. The worst is over. Ah, that is, until the inflation hits.

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