Posted by
Doug Wolkon on June 10, 2009 at 1:35 pm
So often I am asked if I think home prices are going up or down. I remember in 2004 sitting around a big conference table with my private equity partners answering this same question (we financed large condo projects and bought raw land parcels to resell to home builders). And even with the 30%+ drop in housing prices in America from their peak in 2006, my then most unpopular answer has not changed, its still “down”. Continued »
Posted by
Doug Wolkon on October 28, 2008 at 11:05 pm
The American Dream once strongly stood for ideal freedom. For as a child in America, we are so fortunately nagged about what we want to be when we grow up: a fireman? an astronaut? or how about an entrepreneur? The American Dream meant career choices for everyone in America!
But somehow our freedom of choice that once so clearly encompassed the American Dream changed. Not sure when or how, but it clearly changed. For as I grew older, the American Dream became all about owning a home. What house, in what neighborhood, with how many bedrooms was all that we seemed to dream about. But then suddenly, the dream became a nightmare. Continued »
Posted by
Doug Wolkon on September 10, 2008 at 7:48 pm
You must invest retirement savings in the businesses and real estate in your own State. The U.S. economy has changed. It has become more local and will continue to do so to fight off imported inflation. The dollar has inflated. It has dropped about 50% in value from its peak across all major trade currencies. As a result, we are experiencing a much higher cost to transport and import goods and services.
However, the reality is that it is the perfect investment opportunity to start working the local land again. Prices for local farmland is relatively low as it relates to higher prices from more demand and lower supply. Continued »
Posted by
Doug Wolkon on April 13, 2008 at 9:40 pm
The word “balance” has significant meaning here. When you take something “off-balance,” you are doing just that. In other words, balance is good (think yoga or buddhism), off-balance (think checkbook) is not good. On that note, what do you call Fannie Mae, Freddie Mac and Sallie Mae. Do they qualify as “off-balance sheet financing?” How about the Bear Stearns portfolio. The U.S. government did about 36 hours of due diligence on that one, is that one off-balance sheet too? Continued »
Posted by
Doug Wolkon on March 10, 2008 at 10:48 am
Dramatic unemployment increases in financial services, construction and autos will be the real shoe to drop. Who will pay for all these billions of dollars of writedowns? Oh, I forgot, the Fed has the ability to actually print more food and oil - yeah right, was Bernanke ever taught the first rule of Economics: Land is Scarce.
So how much of our newly printed paper is currently being bought by our social security system - talk about drinking your own blood. The welfare state will inevitably be forced to solve their huge inefficient costs of entitlements and armed forces. Continued »
Posted by
Doug Wolkon on August 20, 2007 at 5:39 pm
When I think of Equity, I think of the Equity in a home, real estate or a business, after deducting debt or margin. I think of Equity as being the opposite of debt; renewable energy is Equity, as is Free Time. In any case, it is always fiercely competitive to get any kind of Equity because Equity is good, just like debt is bad. But, I also think of fairness or evenhandedness when I think of Equity, as in equitable; you know, you get what you earn and once you earn it, only you figure out how to best use it. When I think of Equity, I think of you! Continued »
