Latest Headlines on OCRegister.com
[x] Close
Lansner on Real Estate ~ The latest news about the housing market from Orange County Register columnist Jon Lansner.
« Previous Post
Next Post »

CalPERS housing portfolio off 35%

November 12th, 2008, 9:12 pm · 17 Comments · posted by Jon Lansner

California pension giant CalPERS reports …

… market value of its housing assets stood at $6.1 billion as of June 30, 2008, down from its original cost of $9.3 billion. This is based on evaluations performed by independent appraisers of assets contained within 20 partnerships as of March 31, 2008. This $3.2 billion reduction represents a 35 percent decline in market value of the CalPERS housing portfolio.

The impact on performance was also reported. For the one-year period, the housing decline put the real estate portfolio into negative territory. However, current gains in the 12-month period through June 30, 2008 have offset that decline, with overall real estate making a positive return for the three-year, five-year, and since inception periods.

“This portfolio reflects the realities of today’s market and accurately depicts readjustments of price and risk,” said George Diehr, Chair of the Investment Committee. “We intend to keep the vast majority of our assets,” he added, “and our long term horizon enables us to be patient. If the market values increase over time, we can expect cash flow back and a return on our capital.”

To read more, CLICK HERE!

In October, CalPERS warned its member agencies that contributions from employers — state and school agencies — could rise as much as 4% by 2010 if current stock market weakness holds.

Other meltdown coverage:

  • “Worse than the Depression”
  • Why loan modifications don’t work
  • O.C. bank gets cut of $700 billion bailout
  • Paulson says buying bad loans is a bad idea
  • ‘Please lend now,’ Fed tells banks
  • Fannie, Freddie and Citigroup to offer mortgage aid
  • Hard times hit apartment owners
  • CA legislative analyst sees huge future budget gaps
  • High-flying AIG subsidiary gets to play with Uncle Sam’s dough, too
  • Should feds have let AIG go bankrupt?
    • ADVERTISEMENT

    You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

     17 Comments

    • Patricio says:
      November 12, 2008 at 10 pm

      Why do I think that this organization is ran by semi-retarded monkeys? I am sure if they could they would have been part of the tulip boom, do they have any socks.com stocks left also?

      The sad thing is that these organizations entrusted to be the stewards of others retirement are nothing but incompetent squanders of wealth. I can say this because I saw this coming in 2004-2005 and I am no economist and thought people were nuts back then….people hired to make smart moves who bought into this hype deserve at a minimum to lose their jobs and be humiliated that they couldn’t see this proverbial perfect financial storm coming.

    • Helen Highwater says:
      November 13, 2008 at 6 am

      Be of good cheer this morning people. A ray of hope has been detected.
      BOSTON (Reuters) - Five of the world’s richest and most powerful hedge fund managers will face a U.S. Congressional panel
      on Thursday that wants to know if the secretive industry poses risks to the financial system.
      John Paulson, George Soros, Philip Falcone, James Simons and Kenneth Griffin were scheduled to testify at the House of
      Representatives Committee on Oversight and Government Reform about the role of hedge funds in financial markets and their
      regulatory and tax status.
      They should add Jeff Greene to the list. Paulson and Soros and Greene with a tip from Eliot Spitzer, used CDS written against the large Mortgage Lenders to drive them into the ground and destroy the ratings on their CDO’s, thus starting the first dominos to fall in the Sub Prime disaster. I would love to see these men hauled out Enron style with their coats over their heads. I’m not holding my breath though, with the Dems leading the inquiry this will probably go nowhere, since 75% of Hedge Fund Manager donations went to the Dems.

    • Helen Highwater says:
      November 13, 2008 at 6 am

      A very tongure in cheek editorial on the state of the economy and whose to blame.
      http://www.bloomberg.com/apps/news?pid=20601039&sid=a1fW2P6H4W5U&refer=home

    • bulwark says:
      November 13, 2008 at 6 am

      The Obama Administration will make sure George Soros and the other Dems are let off the hook, but they’re already planning an investigation of the Bush Administration. This is the way they’ll spend your taxpayer dollars and solve the world’s financial crisis.

    • Helen Highwater says:
      November 13, 2008 at 7 am

      Bulwark,
      Unfortunately you are correct. We can expect at least 2 years of the Pelosi/Reid dog and Pony show. However, they may underestimate the power of the internet to expose the core cause of the economic crisis and who put us here. Although, I wouldn’t put it past their friends at Google to limit any hard critizism under the Fairness Doctrine.

    • Marcia says:
      November 13, 2008 at 7 am

      Hi Jon-

      Any update on the (currently red) Median Arrow yet? I’m curious how the market faired AFTER the stock market meltdown in October. Banks have gotten even tighter in their lending standards. This has got to impacted the sales of higher end homes, putting more downward pressure on the median, as only lower end, foreclosed homes would be selling.

      Thanks.

    • Helen Highwater says:
      November 13, 2008 at 7 am

      Mortgage apps are up 11.9%

    • Prince of Heck says:
      November 13, 2008 at 9 am

      “They should add Jeff Greene to the list. Paulson and Soros and Greene with a tip from Eliot Spitzer, used CDS written against the large Mortgage Lenders to drive them into the ground and destroy the ratings on their CDO’s, thus starting the first dominos to fall in the Sub Prime disaster.”

      Oh no, let’s blame the hedge funds for the disastrous economy. Soros must have convinced so many underqualified buyers to sign on the dotted line and banks to suspend their disbelief that median OC income is nowhere close to 100+K.

      At least try to spread some more realistic misinformation. No wonder the Republican party lost so many electoral seats.

    • Prince of Heck says:
      November 13, 2008 at 9 am

      # Helen Highwater Says:
      November 13th, 2008 at 7:10 am

      “Unfortunately you are correct. We can expect at least 2 years of the Pelosi/Reid dog and Pony show. However, they may underestimate the power of the internet to expose the core cause of the economic crisis and who put us here. Although, I wouldn’t put it past their friends at Google to limit any hard critizism under the Fairness Doctrine.”

      Please enlighten us about the true reasons to this crisis. Couldn’t be the overleveraged consumers and lenders, right?

    • Helen Highwater says:
      November 13, 2008 at 11 am

      PofH,
      ” Do not debate your advisary, ridicule him.” Josef Gobbles. Nice tactics. If you really want to find out about these people I suggest you Google the names and read up on them as I did, because I know you have no intention of intelligent discussion.

    • Prince of Heck says:
      November 13, 2008 at 1 pm

      HH,

      “Do not debate your advisary, ridicule him.” Josef Gobbles. Nice tactics. ”

      Try to spell historical figures right if you’re going to quote them. It’s “Goebbels” not “Gobbles”. No wonder it’s so easy to ridicule your posts.

      Speaking of ridiculous propaganda, remember “freedom fries” and “you’re either with us or against us”?

      “Nice tactics. If you really want to find out about these people I suggest you Google the names and read up on them as I did, because I know you have no intention of intelligent discussion.”

      Blaming this whole financial mess on a few individuals or one party is not worth a fraction of anyone’s mental faculties.

    • Helen Highwater says:
      November 13, 2008 at 1 pm

      Oh I see you even know how to spell his name correctly, should’ve known. How much do the low brows pay you to police the blogs for them? And I doubt if any member of your mental faculty has tenure yet. And yes ridicule is much easier than addressing the issue.

    • Jason says:
      November 13, 2008 at 2 pm

      HH has a persecution complex, as partially evidenced by her invocation of the Nazis.

      I think she’s the same person who was complaining earlier about being cyberstalked by people from other blogs. She wants to be a thorn in your side — plenty of time on her hands these days — but she has no barbs and is easily brushed off.

      The Original Jason

    • Helen Highwater says:
      November 13, 2008 at 3 pm

      Jason, go nibble the walnuts off someones holiday cheese log.

    • Prince of Heck says:
      November 13, 2008 at 4 pm

      # Helen Highwater Says:
      November 13th, 2008 at 1:38 pm

      “Oh I see you even know how to spell his name correctly, should’ve known. How much do the low brows pay you to police the blogs for them?”

      What’s the matter, can’t admit that your intellectual train derailed before it even left the station?

      “And I doubt if any member of your mental faculty has tenure yet. And yes ridicule is much easier than addressing the issue.”

      I already addressed your biased allegations about the reasons for the economic meltdown. Your point of view is dishonestly or ignorantly simple.

    • Helen Highwater says:
      November 13, 2008 at 4 pm

      OK mister blog monitor are you going to turn me in for re-education? You haven’t addressed anything you are just having a pissy fit. Go cry to your commrades.