Home Prices in 20 U.S. Cities Declined 16.3% in July (Update1)
By Bob Willis
Sept. 30 (Bloomberg) -- House prices in 20 U.S. cities declined in July at the fastest pace on record, signaling the worst housing recession in a generation had yet to trough even before this month's credit crisis.
The S&P/Case-Shiller home-price index dropped 16.3 percent from a year earlier, more than forecast, after a 15.9 percent decline in June. The gauge has fallen every month since January 2007, and year-over-year records began in 2001.
As long as houseprices fall the economy is not going to bounce back - the average affordability point over the last centuries which can be viewed as a fair value is still 10-15% away to the downside for houseprices. Usually we also have the pendulum effect which is after an exaggeration to one side we also have a swing to the other side hence we might even undercut fairvalue by 10- 20% to the downside.
The 4th quater is the home-run quarter for Tech companies thats why Mr Gates wants the spirits too be boosted by a bailout package (forget it) and he runs a huge stock investment enterprise with his philantropic cover the Bill & Melinda Gates Foundation
As an executive, Gates met regularly with Microsoft's senior managers and program managers. Firsthand accounts of these meetings describe him as verbally combative, berating managers for perceived holes in their business strategies or proposals that placed the company's long-term interests at risk. He often interrupted presentations with such comments as, "That's the stupidest thing I've ever heard!" and, "Why don't you just give up your options and join the Peace Corps?" The target of his outburst then had to defend the proposal in detail until, hopefully, Gates was fully convinced. When subordinates appeared to be procrastinating, he was known to remark sarcastically, "I'll do it over the weekend."
The foundation has also received criticism because it invests the assets that it has not yet distributed, with the exclusive goal of maximizing the return on investment. As a result, its investments include companies that have been criticized for worsening poverty in the same developing countries where the Foundation is attempting to relieve poverty. These include companies that pollute heavily and pharmaceutical companies that do not sell into the developing world. In response to press criticism, the foundation announced in 2007 a review of its investments to assess social responsibility. It subsequently cancelled the review and stood by its policy of investing for maximum return, while using voting rights to influence company practices.
The foundation is just a camouflage for his real purpose - to make money with investments - thats why he linked with Warren Buffett. I guess his portfolio has suffered substantially with the recent market decline.