5.8 billion in write-downs for "A" and above mort. funds from Merrill Lynch . . .?

Question

When asked if these funds were now priced correctly, Merill Lynch could not answer . . . It appears the credit crunch has moved from the sub-prime borrower to the A and above . . . if you work in real estate has this affected you yet . . . (total write downs were 14.2 billion . . . )

Answer 1

I work in real estate and so far, no it hasn't really affected me. Not me personally. It helps that I'm part of a very successful team, and in a densely populated area that has a lot of military and government personnel coming and going. It has stopped our insane price appreciation, moving it towards a more sustainable 6% increase from '06 to '07. The pace and focus of business has also changed as it has shifted from a seller to a neutral/slight (in my area) buyer's market. I understand in other areas of the country it's a full blown buyer's market, that's not really the case here, concessions are usually made but houses are still selling in great numbers.

Newer and less successful agents are feeling the crunch, during the boom everyone could succeed in our market, now agents are being forced out. Which is a good thing, survival of the fittest so to speak.

Answer 2

The whole thing with subprime lending is such a sick and twisted joke. These companies and investors are trying to make money off the poor and unsophisticated. Check out this article or it might be an editorial.
http://www.truthout.org/docs_2006/102607O.shtml
To own a house goes beyond the mortgage payment. It is a risk. It's not liquid but it does well against inflation.
We need more regulation, not less. It's unfortunate but so it goes in a world when a lot of people just want to take care of themselves. We are losing the connection with each other. That must stop.
Merrill Lynch, according to the link above, seems to have lied to its investors. AAA bonds when they were junk bonds.
Oy!! This is another reason I am for better education for all.
This kind of stuff affects everyone negatively. This is where we need to come together and say enough. This isn't the first of its kind, what is happening here. We can do better. We must. What kind of future are we leaving? Do we care? If we don't then what does that say about us? Nothing good I'm sure.

Answer 3

I read about this yesterday....."biggest losses in a quarter since the 93 years of Merrill Lynch's inception."

They're FIRING the CEO because of it. Probably this morning, they said.