Paulson & Co. turns bullish on housing, economy

[Vast LWC]

More good economic news.

This is the firm that predicted the housing market downturn for Goldman. They are top of the line market analysts.

Of course Goldman used the information to defraud their customers, but that's neither here nor there...

Paulson & Co. turns bullish on housing, economy Hedge Funds - MarketWatch

Paulson & Co. turns bullish on housing, economy
After betting against mortgages, manager sees home prices up 8%-10% in 2011

SAN FRANCISCO (MarketWatch) -- John Paulson, the hedge fund manager famous for betting against mortgage securities, is now bullish on the U.S. housing market and the economy.

During a conference call with investors Wednesday, Paulson said he was concerned earlier this year about a potential double-dip recession.

"I'm not concerned about that at all today," he said. It's more likely there could be a V-shaped recovery, Paulson continued.

House prices have stabilized and could climb 8% to 10% nationwide in 2011, Paulson said.

 

[Vast LWC]

I for one will be mighty glad to see the value of my house go back up again by 8-10% next year.

 

[Vast LWC]

Good news. No takers?

 

[Dr Gregg]

Great news. Also great news that GM is back on their feet and building new facilities in two locations, sure to drive up employment

 

[Ringel05]

I hope they're right. That would be good news indeed.

 

[Vast LWC]

I hope they're right. That would be good news indeed.

Paulson is a bunch of greedy bastards, but they are some of the best around.

If these guys are betting this way, I'd put my money with them.

 

[Ringel05]

I hope they're right. That would be good news indeed.

Paulson is a bunch of greedy bastards, but they are some of the best around.

If these guys are betting this way, I'd put my money with them.

They're greedy bastards but you are playing their bet. Uuuummmm........

 

[Vast LWC]

I hope they're right. That would be good news indeed.

Paulson is a bunch of greedy bastards, but they are some of the best around.

If these guys are betting this way, I'd put my money with them.

They're greedy bastards but you are playing their bet. Uuuummmm........

Yeah, I see where you're going with this, but the Paulson/Goldman thing was a rip-off of Goldman clients, with Goldman advising their clients in the wrong direction, not his own.

He's making this prediction to the public and his own clients.

 

[Toro]

Land prices appear to be bottoming.

Foreclosures and depressed prices are still hammering the Phoenix housing market. Yet home builder PulteGroup Inc. this month had to fight off six other bidders to win land in the suburb of Gilbert.

In Arizona and across the U.S., home builders are battling to acquire land lots in preparation for ramping up home construction. While volume is tough to track, analysts report that land deals have been rising rapidly in recent months, causing land prices in some of the nation's weakest housing markets to rise for the first time since 2006.

"There's been an absolute land rush," said Gregor Watson, a partner with McKinley Partners, a California-based real-estate fund that works with builders.

That marks a big shift from the downturn, when builders halted development and liquidated land for pennies on the dollar. Now the companies are spending millions of dollars to boost their land supply, optimistic that sales will pick up once the employment picture improves. But the push is creating some concerns about whether builders could be overreaching. ...

Nationally, finished-lot prices, which saw low-single digit increases in the first quarter, are up nearly 20% from the trough, largely considered early 2009, according to a land survey released this week by housing-research firm Zelman & Associates. Lot prices in Phoenix and Southern California's Inland Empire have soared more than 60%. Sacramento, Orlando and Los Angeles are up between 30% and 40%.

Nationally, the best-located lots are commanding double what they would have a year earlier, said Greg Vogel, chief executive of Land Advisors Organization, a national land brokerage firm based in Scottsdale, Ariz.

"We're talking about a significant turn here," said Jim McNeil, chairman of law firm Akerman Senterfitt's national residential development practice that represents several public and private builders. "The builders think this thing has turned and they're making sizeable investments in both finished lots and raw land."

Home Builders Fight for Land to Prep for Upturn - WSJ.com

 

[Ringel05]

Paulson is a bunch of greedy bastards, but they are some of the best around.

If these guys are betting this way, I'd put my money with them.

They're greedy bastards but you are playing their bet. Uuuummmm........

Yeah, I see where you're going with this, but the Paulson/Goldman thing was a rip-off of Goldman clients, with Goldman advising their clients in the wrong direction, not his own.

He's making this prediction to the public and his own clients.

You statement just struck me as, well honestly, as hypocritical. It was just a perception (not accusation) on my part. I should have put a lol after it.

 

[william the wie]

I for one will be mighty glad to see the value of my house go back up again by 8-10% next year.

In New York I would tend to doubt that happening by that much 2-4% seems more likely. The implicit assumptions of the prediction include:

Foreign sovereign defaults will be a net plus for the US even if CA and perhaps other states also default.

That the continuing shift to the sunbelt picks up speed due to internal capital flight from high tax/defaulted states. Let me go over that a bit when HCR taxes kick in next year there will be a huge incentive to move to lower tax states with lots of cheap empty houses.

I kind of doubt that those two assumptions will be of more than marginal help in New York but you will be in much better shape than the rest of the Northeast due to all of the banking business and certainly better off than the left coast. But when the stockmarket heads to New Orleans or Las Vegas along with the Broadway showgirls to avoid state and local taxes methinks you're screwed.

 

[uscitizen]

Predictions are not good news.

When it happens it is good news.

Anyway 8 - 10% inflation in the housing industry is good news?