BNB babcock & brown limited

i think nowadays credit is no longer the issue regarding asset...

  1. 589 Posts.
    i think nowadays credit is no longer the issue regarding asset prices.

    asset prices were a bubble and they have no burst -- there is no going back to the ridiculous valuations any time soon.

    globally P/Es are falling for all income-generating assets, due to the recession.

    So yes if the asset prices start immediately increasing (say within 2 yrs) then MAYBE. Otherwise prices are here to stay for a while like they are now, and will probably sink another 10-20% (they're already off around 30%) bringing total fall in asset values probably close to 40% -- that means BNB will be in the red to the tune of 3b (Hence why banks are so desperate).

    I just don't see the asset price situation turning around very soon -- PLENTY of assets on the market and not enough economic activity to warrant high prices for those assets.
 
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