Wednesday, March 23, 2011

Headlines like this puzzle me.......

Excess Capital Spurs Buyers Into
Purchases for Fear of Missing Deals

Do really smart people invest because they are afraid of missing a
deal?    Evidence apparently suggests they do.

Joe Caton writes in his March column in the National Real Estate
Investor:

"While commercial real estate fundamentals are clearly in the
early stages of a long healing process, the large amount of
debt and equity that’s already being deployed in the industry
following the Great Recession is raising eyebrows. Jamie
Dimon, CEO of J.P. Morgan Chase, recently stated that the
expected buildup of capital in the banking system over the
next year “may make people do stupid things.”

Oh, great.  For this they make all that money?

Full essay here

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