How my local Newsrag ignored warnings…
September 11, 2008 11:04 pm
In mid-February 2008, I attended a Reuters conference in New York that got me thinking. I asked myself: How bad is this sub-prime crisis? I also wondered how far it could infect the rest of our economy. It didn’t take to long to put together a projection and I was compelled to send some thoughts and the information learned at the conference to my local newspaper. I thought that it would be a good idea if the information could be disseminated as to help a few people before things got much worse.
So, I sent it to the real estate editor and even wrote to the president of the paper to see if they would get the word out. What a joke! Not a response at all and that is after I sent it several times.
Here is the email I sent to Mr. O and Mr. G. I am not going to name the paper, but I will tell you it is not the Miami Herald and they are apparently had some big news related to an archived article regarding a bankruptcy filing for UAL.
Good article,…I just got back from attending the Reuters Summit on the Housing Crisis which was held in NY. There is much more that needs to get out to the public regarding the additional problems that will hurt consumers and investors.
To that end, it seems that many people/press are looking and reporting as to where we are, and perhaps should be looking around the corner at what could be potentially coming:
- Credit seizure in all areas could prevent local economies/governments from running
- Pension Plan losses due to inability to price auction and asset backed investments
- State Pools (an other emergency funds) freeze if they have funds in sub-prime, junk bonds, auction-backed and asset-backed
- Student Loan market crisis looming
- Muni bonds will cost significantly more to issue as credit agencies are untrusted, driving rates down and interest payments up. Add the fact that there is a shrinking tax base due to foreclosures and….
- Opportunity in Rental Real Estate for investors??
- Fallout for Retail and Travel/Tourism industries.
- Run-on-the-bank scenario starting to build.
- South Florida banks that should be on watch list.
- FDIC – concern over if they handle another S&L type fiasco.
- South Florida auto industry implosion ( pricing, limited credit, excess inventory, poor floor-planning, tighter credit requirements).
- Mutual Fund distribution freeze for illiquid fixed income investments.
- Section 8 housing flood on market as next investment opportunity as possible inclusion under one bailout idea.
- Sovereign debt drying up as a foreign countries are not only feeling their own problems, unwilling to risk in potentially illiquid positions
- Lawyers will benefit from Foreclosures, bankruptcy and liability lawsuits.
- Trouble for investors with certain Money Markets and other traditionally safe short term debt securities.
The list goes on, but these are the most important for now and could provide a significant impact. By providing readers with an advanced look into some of these, maybe when it comes time when a bank or fund stops any withdrawals, drops their interest rate or dividend, they could have been able to of done something in advance.
This is the first time this has been published. I am just so agitated with the cavalier attitude of the press and the media.
It would have been nice if the reported could have been looking forward instead of backward. But he didn’t. Too bad it was ignored, even after sending it several times..Maybe it could have helped someone.
Check this out as well: What is with the Media Arrogance?