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Monday, July 16, 2007

Future opportunities in the subprime market

Following on from the last post, I feel Mr Schultz could well be right, though the timing is important. There are going to be many people with an impaired credit history after this debacle, who want to have another go at owning their own home; and presumably houses will become more reasonably-priced, too. A specialist lender could get good returns from servicing carefully-selected customers, in much the same way that after a natural disaster, fresh insurance companies enter the market on a better footing, while the outfits that were already committed are still struggling.

As Wavy Gravy said at Woodstock, “There’s always a little bit of heaven in a disaster area.” Though of course, I'm sure he didn't mean it in quite that way.

Update

Having written that last bit, what do I read (in Saturday's Free New Mexican) but that some of the hippies who set up communes in New Mexico eventually became realtors!

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