| Cliffs should choose another number |
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An article in today’s New York Times by Ken Belson about The Cliffs Communities and Tiger Woods ends on a strangely ironic note. “I can’t find 12 percent guaranteed income in any other thing these If the income is truly guaranteed, there should be no worries about "capitalist vultures." Mr. Tucker goes on to say that, “It [the loan] also provides me with an insurance policy that I will not all of a sudden be placed in a position where the country club is managed by some capitalist vulture who washes out my equity.” If residents don't come up with the $60 million in financing, Anthony has indicated he will have to seek the money from external sources, and at higher rates, with the prospect of losing his impressive roster of amenities to an investment bank in case of default. It strikes us that if the income is truly “guaranteed,” then worries about “capitalist vultures” are unwarranted. But the greater faux pas is the reference to “12 percent guaranteed” which has become one of the most infamous numbers in the history of finance. It was precisely the return Bernie Madoff guaranteed his clients.
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| Monday, 29 March 2010 18:43 | |||
| Last Updated on Monday, 29 March 2010 19:05 |
Comments
Many members walked into the meeting with high expectations and left the meeting with their hopes dashed....
Like I said yesterday .. it's time that Jim Anthony and his staff got back to reality, parked their ego's and opened up their golf courses at the Cliffs on a semi-private basis with discounted rates ~ and triple their cash flow.
Or, Anthony can wait for those 80 some residents that are 5 minutes away from their million dollar foreclosures and see what kind of contributions he can obtain from million dollar beer budgets that are broken.
Let's be honest here ... there's 12+ residents that live in the Cliffs that are in the top 1% of the financial world, and they've been ducking and weaving any investment moves on the Cliffs for over a year -- that alone should give everyone time to ponder any investment ideas.