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Billions of dollars investing in industry is that nobody else wanted after buying into the housing market at the -- possible time -- now selling.
His real estate holdings its people buying and -- time Wilbur Ross chairman and CEO of WL Ross joins us out of plus.
This is excusable congratulations got a good deal and act -- used to be American Home Mortgage than it was.
Called home word residential we're talk about that in a second but I'm intrigued -- -- first guests and at least one of them believing that when you're in a recession now.
Do you believe that.
Well I don't think it.
Meets the technical definition of recession because that's two consecutive quarters of -- GDP.
And we have we have Marty Feldstein on earlier he thinks economy's bad but he used to decide whether we recession he doesn't think we're there yet well he used to decide whether -- call -- I and I don't think he really decided what we've been in -- no I don't think anybody would decide to do it feels like or yeah.
-- -- -- Sell through that through the people who are out of work and surely feels like a recession.
And to the people are struggling to get orders and surely feels like a recession so I don't -- critical issue.
Matters I think the real.
Is do we go over the fiscal cliff January 1 if we do then for sure we're going to be in the recession level take.
Three and a half percent out of the GDP.
Should stroke of midnight.
That's a big -- we don't grow -- three and have -- and so that clearly would put to us that.
The chief economist of the IMF said today that it's gonna take ten years to get out of this -- canal was just amazing but you've been very clear about this -- -- saying that on.
Mitt Romney is the guide to help the markets why are you so bullish on -- Romney.
Well for several reasons one the we won't have a lot of the horrible things that the regulatory agencies are doing the over regulation.
That's a huge problem for revisions and for business confidence.
-- be better supervision.
-- that needed for example.
Of the people who exit unemployment.
To so to get disability benefits saying that they have mental disability.
Mental disability and they don't really investigated we'll.
Maybe they really are all mentally disabled but I'd be surprised -- -- of a sudden millions and millions of people have become mentally disabled.
-- cost money to actually interesting though the reason they go off the regular unemployment to get to stability and -- pays more.
Let's go let's go down to business here in your business in particular.
Home or residential you've made what about 900 million dollars out of business since 2007 was a great deal you got it it.
Interest in time and then you just sold it for a total 750 million in cash and stock.
That's a nice chunk a change but does -- getting out of this particular our branch of the mortgage business mean that may be the home market is not a solid this as a lot of people think it.
Yeah there's just we've been in it for quite awhile and as you know and private equity the only two good days that he buys something in the days -- And the same with the votes by the way we're gonna idea and it is easier to sell than boats -- -- so that was one thing we've been in it for quite awhile and you know.
Penalties like realization so that was -- what's your view of the housing market in general because you didn't have an inside look well we're still in -- we have a small one called C and C capital markets cooperative.
-- we very recently bought a very large.
The mortgage originators and mortgage service yeah.
We're not running away from the space is just that it's gotten to be such a big business and such a popular dozens.
We decided we -- that had to be of major acquiring.
Go after GMAC things like that.
Or fold and with someone else who is father alone.
We're keeping your big stake in -- one.
Keeping a 162 million dollars worth of convertible preferred.
And that's because we've thought the market would accept the deal.
Very well and would like and and as you know the stock ran up like -- today on the news so.
-- filmed pretty good about the preferred part of the investments well.
We also think there's a very good corporate culture mix between the when guys and ourselves.
They've lived in west I live in companies who I know -- -- them.
Those whole crowd there very very good.
People and mortgage servicing -- a scale business.
This -- quite a lot of their scale.
It probably will make it an even more efficient operation than it was before.
You go where no one else goes for everybody else is scared -- dark corners weary going right now well.
We haven't changed where in shale gas now we're in marine transport.
We're into European banks in those are three big themes right at the moment.
I loved the way you're -- shale gas for those who don't know.
China I I thought that the United States have -- a natural gas in shale than any other country in fact it's China.
The one thing they don't have though that we do have is the ability to tap into what we have the technology we have the know how we of the company's.
Your -- and correct me if I'm Robert your kind of putting those two sides together correctly.
We're trying to do your bit they have the love of very big acreage coming up for bid on the -- sixth of October.
So we're trying to organize.
Has -- -- American consortium.
Consisting of a big Chinese company.
Big American natural gas people.
In order to pay put a very good face into the auction.
In China they're only been 63.
Wells drilled for -- -- so well we think they may have half again as much gases US.
63 wells of very small.
US drillers would now be the time did invest in them and because they could see the potential in China as well well and I don't know I don't know what the -- them who's who's doing I don't think I'm just wanted to people out there how to they invest like Wilbur Ross right now.
In China throw this thing.
Good -- -- such reckless risks are all supposedly.
-- -- -- -- -- I'm not aware of which of those -- can -- -- -- but what is the difference.
Only 63 wells in China of which only three were horizontal drilling and fracturing.
Over a million wells in the US house with horizontal drilling and fracture while so.
It can be made to work.
But it's not an easy thing this is a very complicated technology and and I think it's a very good way to have cooperation between China and -- Less Wilbur Ross thank you so much for all the and -- today we've got to.
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