One of the things about a blog - you've got to post to it....so here we are in the midst of the annual humidity festival a/k/a New York City and I'm finally getting around to writing.

So first I have a newspaper observation:

Is anyone paying attention to what is happening over at the New York Daily News? They seem to be shaking up the teams over at the New York Times and pulling their best people over. I'm thrilled to see it take place and excited by their enthusiasm and dedication to changing their real estate section. I look forward to seeing what develops.

On a more national media note:

With Manhattan's real estate market being very strong - about the only gloom and doom media writers can whip up seems to be about the sub-prime market. Where was everyone when Washington Mutual whisked into Manhattan offering their 100% financing products? I always have been against 100% financing and today's stories merely give substance to the argument.



I remember a discussion I had with one of our developers in the City - oh about 4 years ago now. He was instrumental in several larger projects Uptown. In a discussion about what financing should they allow for a new housing project - he initially proposed 100% financing. He looked at me and said, "If someone doesn't get 100% financing, something is wrong with them." My response, "You believe that?" His response was yes and in fact on his Florida home he had done just that. His thought process was --- if you don't acquire 100% financing, then perhaps you shouldn't be buying because you don't believe in the strength of your investment. I thought that was an interesting analysis - I didn't agree. I guess that makes me just a wee bit more risk adverse, but I've been in the business for over 20 years.




Why am I babbling here about sub-prime loans? The Wall Street Journal interviewed me a while back about the subject. It was never printed. Perhaps because I could not agree with a conclusive remark that we were witnessing the "collapse" of our Manhattan real estate market. Thank goodness 75% of the housing in Manhattan is cooperative ownership (whatever your opinion may be - good or bad) with the Boards who have not forgotten what happened in the late 1980's -- and well, they should not.


I attended a legal continuing ed class two weeks ago about foreclosures today in real property. An interesting statistic was given. Of all the loans that have been processedin New York State, only 13% qualify as sub-prime. My goodness. I guess with that fact in mind - it leads me to think we should continue discussing whether we should be in Iraq.