joelouis
09-23-2008, 01:16 PM
MARKET CRISIS HITS THE HORSE BUSINESS
By Ray Paulick (ray@paulickreport.com)
While Congress begins deliberations on the proposed economic bailout package that could cost taxpayers as much as $1 trillion, Thoroughbred owners and breeders are beginning to feel the effects of the turbulence on Wall Street and other world markets.
The financial markets meltdown came smack dab in the middle of the industry’s most important transactional event: the Keeneland September yearling sale. The sale began with a lowered price ceiling during opening select sessions that saw some resilience in the middle market, but, as many consignors feared, the bottom fell out after the first week. Most yearlings going through the ring in the latter part of the Keeneland sale will reflect economic losses to their owners once stud fees, mare investment and boarding costs are taken into consideration.
But those losses are minor compared to what’s happened on Wall Street, which traditionally has created much of the wealth that’s found its way into the yearling market. “If anyone is dependent on new money in the horse business, I don’t think this is going to be a very good time for them,” one business analyst told the Paulick Report.
Read the rest at this link:
http://www.paulickreport.com/blog/market-crisis-hits-the-horse-business/
By Ray Paulick (ray@paulickreport.com)
While Congress begins deliberations on the proposed economic bailout package that could cost taxpayers as much as $1 trillion, Thoroughbred owners and breeders are beginning to feel the effects of the turbulence on Wall Street and other world markets.
The financial markets meltdown came smack dab in the middle of the industry’s most important transactional event: the Keeneland September yearling sale. The sale began with a lowered price ceiling during opening select sessions that saw some resilience in the middle market, but, as many consignors feared, the bottom fell out after the first week. Most yearlings going through the ring in the latter part of the Keeneland sale will reflect economic losses to their owners once stud fees, mare investment and boarding costs are taken into consideration.
But those losses are minor compared to what’s happened on Wall Street, which traditionally has created much of the wealth that’s found its way into the yearling market. “If anyone is dependent on new money in the horse business, I don’t think this is going to be a very good time for them,” one business analyst told the Paulick Report.
Read the rest at this link:
http://www.paulickreport.com/blog/market-crisis-hits-the-horse-business/