Another Point of Light, guest post by Brian Dubuc

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Recent news stories about the federal plan to support the U.S. financial system explain that the Treasury Secretary Hank Paulsen has shifted the focus of this effort from purchasing suspect mortgage backed securities to other non-real estate backed securities and bank capitalization.  The question is why?

If you are looking for that pony in the pile like I am, the answer is obvious – the toxicity of mortgage backed securities was not nearly as bad as was feared.  The stock markets seem to think so too.  Yesterday, real estate stocks were way up.  Huh?

If you also believe that the stock market is a harbinger of things to come, then this is good news.  Of course, we could have a massive sell off today of real estate stocks.  The other explanation is that the initial investment in those CDOs and MBS issues was enough to contain the fire, and now the blaze has moved to other sectors of the financial world.  I just like my theory better, because I just know that I am going to find that pony.

Related posts:

1. Residential Real Estate attracts Private Money, guest post by Brian Dubuc
2. Tenant Improvement Allowance and Landlord Defaults, guest post by Justin Daniels, Atlanta Real Estate Attorney
3. Avoid Using Form Commercial Contracts in Georgia, guest post byJustin Daniels