The Conservative Cave

Current Events => Economics => Topic started by: The Village Idiot on April 13, 2010, 06:15:03 PM

Title: Morgan Stanley Property Fund faces $5.4 Billion loss
Post by: The Village Idiot on April 13, 2010, 06:15:03 PM
http://online.wsj.com/article/SB10001424052702303695604575182022093645864.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsTop


Morgan Stanley has told investors in its $8.8 billion real-estate fund that it may lose nearly two-thirds of its money from bum property investments, according to fund documents reviewed by The Wall Street Journal.

That would likely make it the biggest dollar loss—$5.4 billion—in the history of private-equity real-estate investing.

excerpt
Title: Re: Morgan Stanley Property Fund faces $5.4 Billion loss
Post by: zeitgeist on April 14, 2010, 06:50:49 AM
http://online.wsj.com/article/SB10001424052702303695604575182022093645864.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsTop


Morgan Stanley has told investors in its $8.8 billion real-estate fund that it may lose nearly two-thirds of its money from bum property investments, according to fund documents reviewed by The Wall Street Journal.

That would likely make it the biggest dollar loss—$5.4 billion—in the history of private-equity real-estate investing.

excerpt

I have been reading about the coming meltdown in commercial real estate for about a year now.   Could the effects of this create the W dip?  It very well could. 

In the early eighties ( very early ) I had a friend who gave all his 'investment' money to a broker who promised amazing returns in the commercial development market in Arizona of strip malls.  As I recall my friend was Amazed at his returns ( or lack there of).  To this day I think he still shudders at the mention of the word REIT. 
Title: Re: Morgan Stanley Property Fund faces $5.4 Billion loss
Post by: The Village Idiot on April 14, 2010, 07:16:39 AM
I bet! They were "sure things" at the time, huh?