Wednesday, November 12, 2008

Cracks forming in commercial real estate

Voltron says: General Growth Properties (GGP) may be bankrupt and is removed from the S&P 500 index. ProLogis (PLD) cuts it's dividend, CEO resigns. Both stocks are included in SRS. When the subprime lenders went down, they went one by one because Wall Street refused to acknowledge that THEY WERE ALL THE SAME. Same thing is happening here. GGP and PLD go down in isolation, is if they are messed up oddballs, when in fact they are representative of the industry and the only reason they are going down first is that they are in the wrong place at the wrong time.


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