The Merrill Lynch Sale At 22 cents/$1....Will End Up Far Less Than 22 cents....
- Thread starter libertad
- Start date
Quote from Landis82:
Funny how the SEC gets their panties all twisted-up about short-sellers piling on the financials and all of the rumor-mongering that goes along with it, but then you have someone like THAIN who comes along and says, "No, we don't need to raise any additional capital. We're hedged".
And 2 weeks later . . . What does he do?
RAISE CAPITAL!!!
Talk about your "lying-mofo" Scumbag of the Month award!
Yes, it's classic Merrill Lynch. I liken them to vampires after being on the inside of that mess several years ago. I'm not surprised at the least by anything mother merrill pulls these days.
Being that I no longer daytrade I went back to being a lawyer slash real estate broker. My firm did workouts in the mid 90s.
My old law partner promised himself he would be a principle the next time around -- I went into trading. I made good money first but he is turning into king now.
His hedge fund set up a "platform" to buy and then sell debt from developers. He is on his third deal now. His first two had returns in the 70% range. Now he is raising a great deal of money to buy some really big projects from really broke developers for cents on the dollar.
I talked to him about this and he said lawyers with really large collection operation will not buy this stuff. It is not even worth the 2-7 cents on the dollar you can get it for.
1. many of the loans are not "collectible" after a foreclosure. (state laws vary widely)
2. Many of these toxic borrowers had no assets to begin with and had no real earnings or hope of future earnings.
3. Not only would you have to pay for the loans but you would have to spend money filing lawsuits - perfecting your judgments before dead lines wiped you out.
4. Even if you do get judgments many will be wiped out by bankruptcy.
2 cents on the dollar may be to much for junior liens.
My old law partner promised himself he would be a principle the next time around -- I went into trading. I made good money first but he is turning into king now.
His hedge fund set up a "platform" to buy and then sell debt from developers. He is on his third deal now. His first two had returns in the 70% range. Now he is raising a great deal of money to buy some really big projects from really broke developers for cents on the dollar.
I talked to him about this and he said lawyers with really large collection operation will not buy this stuff. It is not even worth the 2-7 cents on the dollar you can get it for.
1. many of the loans are not "collectible" after a foreclosure. (state laws vary widely)
2. Many of these toxic borrowers had no assets to begin with and had no real earnings or hope of future earnings.
3. Not only would you have to pay for the loans but you would have to spend money filing lawsuits - perfecting your judgments before dead lines wiped you out.
4. Even if you do get judgments many will be wiped out by bankruptcy.
2 cents on the dollar may be to much for junior liens.
There are a select few all cash (the investment firm uses their own money to buy. No loans involved!) private RIET's I know of out there that are doing very well. Not 70% per year though...
More like 6% per month minimum, with an average return of 12-17% per year over the 3-5 year term.
Bieng non-correlated, and all cash is the plus.