There was a very good article in today's New York Times (May 24th) about the mad rush by individuals or funds to purchase foreclosed properties. In some cases, a bidding war has ensued which has driven up prices. It never ceases to amaze me where fundamentals of sound investing seem to be continually thrown out with the bath water. We only have to look around us to see an economy still staggering despite TARP and the other Government measures to try and breathe life into the American economy. Unemployment continues to rise and I don't see Corporate America replacing these jobs in the near future. Just walk down Main Street, Wall Street or any other street for that matter and you just see row after row of empty stores. Commercial and residential rents keep going down as landlords struggle to keep and attract tenants. I listen to presentation after presentation where promoters tell me that rents are only going to go up and therefore you should invest in my real estate project. "We can ring more money from existing and new tenants." Doesn't this sound all too familiar. Denial is such a wonderful thing. Anyways, I am depressing myself more than usual. Signing Off
Michael Felman
MSF Capital Advisors
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