Stuyvesant Town and Manhattan Real Estate

Tishman Speyer Properties and BlackRock Realty are handing the control of Stuy Town to the creditors rather than going through bankruptcy proceedings. The two companies paid $5.4 billion in 2006 fro Stuy Town which is currently valued at $1.9 billion. That is a 65% decline in value of the real estate. When we hear about the level of decline in real estate through government authorities or through real estate associations of course we never hear the real story about the real levels of depreciation in values of real estate. Here is a very real and undisputed proof of the true level of decline. Imagine the value of those MBS and CMBSs on the books of the banks and the Federal Reserve which is the sole market for such securities. The Fed is carrying trillions worth of worthless paper as are the banks. However, banks unloaded a lot of this paper on the Federal Reserve which will be transfered to the taxpayer. When thinking about the level of bail-out money banks got one needs to add these into account.