Monday, January 04, 2010
Hate The REIT, Love The Return - Forbes.com
Hate The REIT, Love The Return - Forbes.com: "The typical S&P 500 company borrows about a quarter for every dollar in equity. REITs borrow a dollar for each dollar in equity, roughly doubling losses and gains so that a 40% decline becomes a dangerous 80% swoon and leverage in the industry has been growing for years. (Compare that with the typical home buyer's leverage of four dollars for every one dollar down and it's easy to see why foreclosures are epidemic.)"
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