Fitch Ratings has turned broadly negative on mortgage securities backed by subprime loans. A report issued today reveals the agency changed its 2007 ratings outlook to negative from stable. Is yet another housing-related sector set to pop? On “Street Signs,” CNBC’s Erin Burnett put the question to business icon Donald Trump, the chairman of Trump Entertainment Resorts.
Trump says he hears a lot of talk that the real estate market isn't good - and compared to two years ago when the market was at its very top, it's not (but it's not weak). Speaking on the markets that he's in, Trump says Chicago is strong, New York is phenomenal, and L.A. is good. He's generally raising prices or keeping them the same - but not lowering them.
Trump says the subprime market is not something he'd get involved with. That's not a surprise since Trump is mostly involved with the top end of the market.
On another note, the latest season of The Apprentice kicks off Sunday, Jan. 7. This time the show will be based in L.A., and in typical Trump fashion, he says this season will be the best yet.