I guess what I was really trying to also illustrate is the potential for the tsunami to get swallowed up by the PPIP, or at least reduced. Lets say some player wants a 100B in assets. So he buys them at say 40%… Okay so 40B right? However if you follow the example in the PPIP he pays 20B of which he can get the Fed to finance some of that right? So at the end of the day the guy puts in what… 10B AT THE MOST right?
So why should he HAVE to put those properties on the market? Geez he could rent them out and make money couldn’t he? He probably does pretty darn well income wise… So then he holds them awhile and when the market turns he KILLS!
Anyways yes it is all really distressing… I learned a hell of alot from this cycle and am still learning every day. However what I learned was what I feared most, was that yes the little guy will get some crumbs, AND darn if you have to be ready to grab those crumbs when they come, but the big guys will always do better. Yes a few lambs were sacrificed but now I have to wait for some interest rate shock to happen before pricing is gonna come down to where I want it…
