A PROBLEM COMING IF HE DOESN'T LOWER RATES. I GOT TO TELL YOU ABOUT IT. >> ANDREW HAS A QUESTION AND WANTS TO JUMP IN, TOO. >> BARRY BEFORE WE GO THERE, GO BACK. INDULGE ME A MOMENT ON THIS VEHICLE IN A YOU HAVE. I THINK IT'S ACTUALLY A MUCH LARGER STORY TO BE DISCUSSED ABOUT SEMILIQUID VEHICLES NOT JUST IN THE REITs SPACE AS YOU KNOW BLACKSTONE AND OTHERS TALKING ABOUT CREATING S SEMILIQUID VEHICLES FOR RETAIL IN PRIVATE EQUITY AND SO MANY OTHER THINGS. THIS TYPE OF VEHICLE COULD BE THE FUTURE OF THE KIND OF THINGS THAT INVESTORS ARE GOING TO MOVE INTO. THE QUESTION I THINK THAT THIS RAISES IS WHETHER THESE TYPE OF VEHICLES AND THE STRUCTURE OF THESE VEHICLES IS A, ARE GOOD? WHETHER THIS IS A GOOD MODEL IN THE FUTURE? I UNDERSTAND THINGS THAT ARE COMPLETELY LIQUID, AND I UNDERSTAND THINGS THAT ARE NOT LIQUID AT ALL. THOSE THINGS MAKE A LOT OF SENSE TO ME. THE SEMI-LIQUID MODEL SORT OF TELLS THE INVESTORS YOU CAN GET OUT WHEN YOU WANT TO GET OUT, BUT BY THE WAY, MAY BE CAN'T GET OUT IS A MORE COMPLICATED ONE AND ALSO CREATES A SORT OF UNIQUE CONUNDRUM, WHICH IS, IF PEOPLE DO WANT TO GET OUT, AND YOU ACTUALLY LET THEM OUT, ALL OF A SUDDEN THERE IS A FIRE SALE ON THOSE ASSETS, BECAUSE YOU HAVE TO SOMEHOW PAY THEM OR GO FIND NEW INVESTORS THE WAY BLACKSTONE DID EFFECTIVELY TO REPLACE THE OLD INVESTORS. THAT UNTO ITSELF SEEMS LIKE A BROKEN -- I DON'T KNOW ABOUT BROKEN BUT A VERY COMPLICATED SITUATION. >> DO THIS -- >> THE FUTURE OF ALL OF US. >> THE SPECTRUM, FACTS, DATA, PRIVATE EQUITY FUNDS GET OUT IN SEVEN YEARS TRADE ON THE SECONDARY MARKET TAKING A BIG DISCOUNT. RIGHT? IN THE MIDDLE NON-TRADED REITs SUPPOSED TO PEG VALUE AND OFFER MONTHLY LIQUIDITY. NOBODY SHOULD THINK USE THEM AS AN ATM. I THINK THIS PROBABLY HIGHLIGHTS THEY'RE IN THAT, IN THE SPECTRUM, RIGHT? HAVE SOME LIQUIDITY BUT THE RSK IS EVERYBODY GETS OUT AT ONCE. YOU'VE SEEN THIS, ANDREW IN HEDGE FUNDS. DECIDE TO SHUT. GATE. NOT LICKQUIDATE AND DON'T WANT FIRE SALE. THOSE USUALLY IN THE HEDGE FUND WORLD ARE LIQUIDATIONS. I MEAN, THIS ISN'T LIQUIDATION. THIS IS, WHEN DO WE BRING ASSETS TO MARKET IF YOU HAVE A THEORY OF WHEN WILL BE THE BEST TIME TO REALIZE GOOD PRICING? WE HAVE THE LUXURY OF BEING ABLE TO TAKE OUR TIME TO SELL ASSETS AND DON'T WANT -- THE ONLY PEOPLE SELLING ASSETS -- TRANSACTIONS ACROSS THE WORLD ARE STILL DOWN 70%. NO TRADES. THE ONLY ONE TRADING IS MORTGAGE COMING DUE AND CAN'T FIND SOMEBODY TO RES DUE THEM, SELL IT AND THE BANKS ALSO ARE SELLING BUILDINGS IN WHAT ARE CALLED SHORT SALES. THEY SAY, LOAN IS BAD IN THE OFFICE BUILDING. A BUILDING IN FLORIDA. $100 MILLION ASSET. LOAN 43 -- 53. SOLD IT STRAIGHT. THE BORROWER TO SELL IT, SHORT SALE, SOLD FOR $43 MILLION. THE BANK SAID, GET ME CASH. I DON'T WANT A NON-PERFORMING MORTGAGE, OFFICE MORTGAGE. >> WHAT ARE PRICES AT THIS POINTS FOR THINGS THAT ARE SELLING? >> EVERY TIME THERE'S A CRISIS THERE'S A SPREAD. BUYERS WANT TO BARGAIN SELLERS WANT YESTERDAY'S PRICES. TODAY I'D SAY THE CAME BETWEEN PRICES. SAY APARTMENTS WERE FIVE AND SELLER WANTS A 4.5 OR 4.75 OR 5.5. SPREAD COMING IN. MARKETS HEALING. FUTURE GETTING CLEARER. CHIEFLY APARTMENTS. BUILD 600,000 APARTMENTS THIS YEAR. BUILD 400,000 NEXT YEAR. 230,000 THE YEAR AFTER AND 227,000. MY PROBLEM WITH POWELL. RIGHT? THIS POLICY HAS CRUSHED MULTIFAMILY STARTS. WE FREED HOUSES. WE HAVE A HUGE HOUSING -- WITH ONLY 220,000 HOUSES CO
