via Eric Peters at wknd notes:
“Show me something hairy, disgusting, distressed,” he said to Singapore’s top real estate deal-maker. And I laughed, having always wondered how my buddy conducted meetings. He runs one of America’s greatest family offices. And we travelled across Asia for 2wks, searching for investment themes, cheap assets, insights, talent. “Nothing’s underpriced,” answered the deal-maker. So I asked if it felt like 2007? “That was fueled by excessive debt, private equity, Lehman – this mkt’s driven by cash, there’s no leverage, just cash, and behind it, more cash.”
Very well said.
The Fed wanted everyone to be flush with cash and now they are. In 2005, only 19% of all home sales were made with cash. Goldman Sachs says that, as of this summer, that number was 57%. Amazing.
Who needs debt when dollars are everywhere?