Economic Winners - Bank of America, Charlotte and Charlotte Real Estate
September 19th, 2008 Categories: Charlotte Business, Charlotte News and Politics, Real Estate News
Economic Winners? Bank of America, Local Charlotte Economy and Charlotte Real Estate
What’s hapenning in the financial markets is historic- and awful, and it might be too early to tastefully talk about winners… It is easy to see the losers in this, Lehman stockholders, employees,and the many companies that came before them. After a decade of high times and greed, and the unbridled pursuit of power, the barbarians are at the gate–only this time they aren’t Wall Street marauders, but the people themselves with pitchforks demanding their money… and with doors closing quickly, it’s frankly getting hard to watch.
But after the shakeout, there will be winners- some of the winners are already clear.
In stage I of this crisis- when the mortgage companies were falling, Bank of America was able to buy Countrywide, the largest mortgage bank in the country, at a deep discount. Now, a year later, as the runs hit Wall Street, they buy one of the blue chips of Wall Street, Merrill Lynch, at a bargain… now the largest bank and largest mortgage originator, Bank of America will have the largest brokerage operation in the world with more than 20,000 advisers and $2.5 trillion in client assets. Merrill’s investment bank also brings significant business to BOA– Ken Lewis, Chairman of BOA, has stated that it would have taken years to develop BOA’s own business to this level (BOA had minimal investment banking operations and 4000 wealth advisers to Merrill’s 17,000) Merrill’s stock had traded at $99/share as recently as the first quarter of 2007, had fallen last week to $17/share based on the uncertainty surrounding its debt obligations, and BOA bought if for $29/share.
BOA has huge deposits which will satisfy all the liquidity concerns around Merrill, and millions of BOA depositors can expect Merrill to be calling on them…Soon! Charlotte, already the 2nd largest financial center in the US, will move forward again with BOA.
And this is just the latest -
Charlotte’s relative economic position has been improving through out this crisis. I’ve been writing on it all year, and between our very sturdy, job-growing local economy (one of very few in the nation) and the little impact the national housing crisis had had here- plus the world’s largest bank buying and growing in major new directions, it’s bringing a lot of favorable attention to the Queen City, and more investment will surely follow.
I can’t s re-state the whole case here, but this is the summary, and details can be found in the links.
In April, I wrote, Recession or No Recession, Charlotte Moves Forward I summarized Charlotte’s response to the growing bad national economic news- our economic strength and confidence, and strong job creation numbers- even in the face of a nationwide housing slump, mounting manufacturing job losses and the financial meltdown. We have said “No thanks” to the recession, and even Wachovia, hammered by sub-prime losses, made a mega hire in Robert Steele- the exact kind of leader to rebuild the bank and keep it independent, and in Charlotte.
In July, I wrote Charlotte Real Estate- 2008 and Beyond More Good Years Ahead- I write about Charlotte’s fundamentals, its relative affordability, a detailed look at the very low housing risk, and its economic strength in growing good jobs here.
Charlotte is placed firmly on MSN’s Hot Real Estate Markets, and last month Forbes predicted several markets will rise in price in the coming years- Charlotte was 2nd on the list.
Earlier this year, I wrote about the North Carolina Research Campus in Kannapolis- about 30 miles east of Charlotte, and 1.5Billion dollar investment being made by billionaire Dole food owner David Murdock. This week NC State University announced they were the recipient of a research grant at the center- there are now 8 Universities participating, and this grant will help NC Farmers band together with new marketing opportunities.
If we can just find a similar $1.5B investor for “green” technology… and takers? Call me… (no I’m not kidding!)
Now, University of North Carolina Economic Professor John Connaughton, who watches the Charlotte economy predicts strong job growth- more than 24,000 in 2008 as more and more employers relocate here and more well-paying jobs are created… and a better 2009, reported the Charlotte Observer just yesterday.
While there is a lot of uncertainty, and no way of telling the final outcome, the expectation of a “National Resolution Trust” operation for the lending industry (deja vu all over again!) may bring an end to the fear and runs on the largest investment houses in the world. Once that happens, and a new regulatory regime comes into force, we can start our engines once again.
And just one editorial comment. Note to politicians: I no longer want “small government. ” I want “right-sized,” effective government. We wouldn’t try and play the Superbowl, or any NFL game, with fuzzy rules and TWO officials on the field… what made us think you could do that on Wall Street where the financial stakes make the NFL look like a big-boys pick up game?
—————————————————
It is a strong buyers market here in the greater Charlotte area, Lake Wylie, Lake Norman, the whole area for new homes and re-sales.
Moving to Charlotte?
Have Questions? I am a Charlotte broker specializing in relocations, 2nd homes–buying and selling real estate of all kinds- and will represent only you. We work with Buyers and Sellers every day. You can quickly compare area prices with the map-based Charlotte home search below. Another good place to start is my fact-filled and well received Introduction to Charlotte Video (nearly 8000 You Tube views, 22 reviews) and don’t miss the FAQ videos in the right column (just under the Introduction to Charlotte Video Screen)
If it’s between the hours of 8 AM to 8 PM, EDT, please don’ t hesitate to call me direct at 704-351-1519. Terry
Related Links
Charlotte Home Search- Map & Community Based
Charlotte Photo Gallery- more than 2500 pictures, 45 galleries of different Charlotte neighborhoods
Where to Look for Luxury Homes in Charlotte- Video
Amazing Ryland Homes At The Palisades for Under $400k
| Currently 1 Comment » |
Charlotte Monday Update| Interest Rates Under 6%, Panthers Win, September is Warm and Wet
September 15th, 2008 Categories: Charlotte News and Politics
Mortgage Interest rate’s kept falling, I heard numbers as low as 5.675 (30 yr fixed) this past week with one point.
What’s the difference between 5.75 and 6.5? More than it appears by a quick glance at the “small” difference in rates. Lets look at a couple examples based on a 30 year fixed rate:
If you borrowed $250,000 ($300,000 home - $50,000 DP), your Principal + Interest (PI) at 5.75%=$1,459. Buy the same house, at 6.5%, and your PI = 1580. Over 5 years, the 5.75% loan SAVES you $7,260, over 10 years it SAVES a Buyer $14,520.
Another example, you are borrowing $1M, your PI at 5.75%= $5,835 , at 6.5% it is $6,320. Wow. Over 5 years, the 5.75 rate SAVES a Buyer $29,100.
That means the home you were looking at last week? It just got cheaper to buy!
——————————————————
It is a little better Monday after a Panthers win, and this 2008 edition of the Carolina Panthers is proving to be quite a team- Back to back 4th Quarter wins over playoff teams, and dominating defense has set the table for a special season– all done while the arguably best player on the team was sidelined. 2-0, with (2) 4th quarter wins, the questions at quarterback answered, not a bad start… I’ll be watching. Here’s the wrap up.
——————————————————–
The drought still hasn’t been declared officially over, but more rain last week has made Charlotte as green as I can remember. What a difference a year makes… and a few tropical depressions blowing through in August! Lakes are full, water tables have to be near full. August had 2 weeks of milder temperatures, daytime highs in the mid 80’s. We are making up for that in September, this past weekend both days wee in the low 90’s.
It is going to be a great fall in the Carolinas.
————————————————-
It’s a strong buyers market here in Charlotte, If you are in town, or coming to town, and need help with anything, please don’t hesitate to give me call at 704-351-1519. We represent Only You.Related posts
Charlotte Home Search -By Area With Community Info-Photos
Moving To Charlotte? Like a Good Introduction to the Area?
| Currently No Comments » |
A Busy Charlotte Weekend- Buyers, The Indian Festival and The Panthers WIN a big one
September 8th, 2008 Categories: Buy A Charlotte Home, Charlotte News and Politics, Things To Do Charlotte
Monday Updates From Charlotte NC!
Mondays are always a bit brighter after a Carolina Panther win on Sunday, and this was quite a win for the Jake Delhomme (first game back after a season on the sidelines with injury) for John Fox, who just bought himself another season, and all the fans who wish this essentially very good organization well. Yes- us fans.
If you didn’t see it, it was a game for the ages, a comeback win on the last play of the game, on a picture perfect pass… Check out logo for highlights, my pc required a plug in- do it, it is worth it! 
———————————————–
The Indian Festival took place in the Blumenthal Performing Arts Center-
and Tryon Street in front of Founders Hall, for the 14th year. This festival celebrates India, its customs, food, and culture… Thanks to a professor friend from Belmont Abbey, Judy and I had free tickets to the inside events, and were in awe of this great country with such a history. We had a great time under perfect Carolina blue skys and temperatures in the high 80’s. Here are few more photos
A great weekend with a busy week ahead.
This week my team and I will be working with home buyers from Falls Church VA, Annapolis MD, San Diego CA, The United Kingdom, and Asheville NC. To see our current listings, and more information for home sellers, visit CharlotteRealEstateHomesandCondos.com
————————————————————
It is a strong buyers market here in the greater Charlotte area. Thinking about moving to Lake Wylie? Lake Norman? Or Charlotte? You can quickly compare area prices with the links below, or just give me, Terry, a call at 704-351-1519. As a Buyer’s Agent I will represent only you. The #1 Real Estate Broker on the Internet in Charlotte.
Related Links
Charlotte Home Search -Map & Community Based
June 2008 Home Sales Report
A Waterfront Beauty at Reflection Pointe
Moving To Charlotte? A Good Introduction to the Area…
| Currently No Comments » |
Labor Day In Charlotte- Festivities and Concern for The Gulf Coast
September 1st, 2008 Categories: Charlotte News and Politics, Things To Do Charlotte
School started for most last week, and this Labor Day Monday has our eyes turned to the Gulf Coast, as Louisiana, Texas, Alabama and the pan handle of Florida prepare for what appears to be a major hurricane.
Now for the best map and blog for storms I’ve seen (thanks to my evacuated son Andrew) That’s Hanna on the right.
3 Years after Katrina, is the city better prepared? Clearly, the evacuation orders were taken seriously this time and seem to be progressing well. But what of the levies? Will they hold? Will the newly rebuilt homes, buildings and towns survive?
All good questions to be answered in the next several days and weeks. Thankfully, the coast is deserted.
———————————————–
If its Labor Day in Charlotte, then its Matthews Alive for us, here are a few photos from last year’s festival. They are all thumnails, click to enlarge.
and here is the map of historic Matthews and the block party that is Matthews Alive
| Currently No Comments » |
