"This transaction is also symptomatic of the dislocations that have occurred in the capital markets over the past 20 years. It is the classic confrontation between private and public corporations who grow through financial engineering versus companies who grow through prudently managing cash flow, maintaining liquidity and their access to the public debt and equity markets.

"Simon, at its core, is a real estate operating company that specializes in the retail sector of the market. The Simon family has spent 50 years growing a portfolio of best in class centers through multiple economic cycles. General Growth, on the other hand, was always dependent on the liquidity of the capital markets and asset appreciation. It is the victim of the perfect storm. An economic contagion grips the capital markets and values of hard assets correct 20%. In this kind of environment the prudent are rewarded with opportunities to acquire assets at significant discounts to replacement cost. The Simon-General Growth is such a transaction.

"The transaction will be good for the industry because it shows that an investor wants to allocate $10 billion in cash to acquire retail assets. In addition, the merger will contribute to building a floor under retail shopping center prices. It is really no different then what we have seen in the pharmaceutical, telecom or technology sectors.