Sunday, November 9, 2008

That Was the Week That Was

A historic week. We collected a few links.

Politics:

Barack Obama's Victory Speech. John McCain's Concession Speech. Mark Warner takes the Senate Seat.

Tom Perriello Claims Victory for the 5th District, though Virgil Goode has not yet conceded the Congressional seat (Nov. 7), and may call for a recount after the current vote count is certified on November 24.

Local News:

*The UVa Endowment suffers a massive loss (Oct. 31). The Endowment lost $600 million from July to September, and an additional 20% in the first two weeks of October when the Stock Market was wiping everybody out and taking the global markets with it.

Unfortunately, according to UVIMCO's report, Virginia also has some frightening ongoing exposure:

We own $1.6 billion in private funds (private equity, real estate, and resources).

We have uncalled commitments of $1.8 billion to private funds. Under normal circumstances, we receive regular distributions from private funds and expect these distributions to exceed capital calls. However, in recent quarters we have received much lower distributions from our private funds than usual. In conversations with our private managers over the past two weeks, they tell us that the financial crisis precludes sales of existing investments, and we should not expect any distributions this quarter and few in 2009. None wish to forecast distribution activity in 2010 and beyond.


The best response to this is "Holy Crap."

UVa has already cut its budget ($10.6M) due to State losses and a mandate from Governor Kaine. The school is not alone in money issues.

*The latest U.S. Census estimates for Charlottesville showed that 23.7% of the City’s residents were living in poverty in 2005. The City Council is struggling with the issue (Nov. 6). (Here's a related story from Oct. 11.)

*Richmond-based national chain Circuit City is closing 155 stores due to declining sales and revenues, including the one in Charlottesville.

National News:

*Just one month into the new fiscal year, which began in October, the federal budget deficit has already reached $232 billion, according to estimates released Friday, Nov. 7.

*The US Jobless rate hits 14 year high: 6.5% (Nov. 7).

*General Motors is running out of money, and Congressional heavies Pelosi and Reid want to extend the TARP $750 Billion bailout to the giant automakers.

*The Senior Risk Manager from Bear Stearns, which got a $29 Billion bailout last March, has now joined the Fed to help assess the needs of banks at risk of failing and decide which need part of the $750Billion. What? Because he did such a great job driving Bear into oblivion?

*Stocks lost 10% in the two days after election, the worst two day downturn ever, but ended the week only 4% down.

*Nationwide, retailers are suffering.

More housing news shortly, in this landscape of iffy economic news. Like millions of others, we think Mr. Obama is The Change We Need. It won't be fast, it won't be easy--but it will come.

4 comments:

busby seo test said...

thanks for the news you posted!!

Anonymous said...

update... circuit city has filed for bankruptcy.

Montpellier said...

But surely this means it's now "all priced in" and the RE bottom is in sight?

Crutchfield has to be happy about the Circuit City news.

Anonymous said...

yeah, bottom in sight.

in sight of late 2010.