Tuesday, September 16, 2008

Speaking of opportunity

There's speculation that if priced right, the Lehman and Merrill distress could bring a surge in buying. But does that really open up the transaction and debt markets? Some say yes, others say, "Not so fast, my friend." They think paralysis is the watchword.

But if a fire sale of Lehman's real estate holdings is unlikely, then "right pricing is not as likely. Nonetheless, I agree with the premise that cash has to eventually be deployed. And it is, believe it or not, out there.

With the AIG situation changing literally by the minute, the market is focused on that and on the Fed meeting. But the dirt will still be there. The question is whether we see an orderly sale of assets over time, or a dirt deal to end all dirt deals that will involve more lawyers than I can count.

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