Question: Bottom Fishing in Real Estate?

Comment: The Residential Capital (ResCap) unit of Ally Financial is rebuffing efforts by Warren Buffett’s Berkshire Hathaway to purchase its mortgage business assets and portfolio. The Associated Press reports that ResCap has filed a motion in bankruptcy court that opposes Berkshire Hathaway’s attempt to be the “stalking horse,” or initial bidder, on its assets. ResCap says that it has already reached a deal with Fortress Investment Group LLC after Ally filed a Chapter 11 bankruptcy for its failing ResCap unit. The bankruptcy court is expected to issue a ruling this week on the issue. Buffett’s interest in ResCap, according to an earlier report by Bloomberg News, was to avoid a bankruptcy filing because Berkshire Hathaway has unsecured debt in ResCap.

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Maulik Mistry: http://www.forbes.com/…/is-warren-buffett-betting-on-a…/
Is Warren Buffett Betting On A Foreign-Backed Housing Recovery? – Forbes
forbes.com
Carlos De Souza: Don’t ever forget one important fact. Along with most others, Buffett also thought real estate prices in the US would never fall (during 2002–2006).
Maulik Mistry: http://www.businessinsider.com/a-huge-number-of-young…
A Huge Number Of Young Homeowners Are Trapped By Underwater Mortgages
businessinsider.com