Replies

Prepper ping - Biden economics effects, and employees who only want to work from home (Unanticipated Consequences)

Kaiser8408a :" Biden, Congress and The Fed.
Terrorists of the middle class."

"No, this isn’t a John Kerry/Greta Thunberg hysterical warning about climate change.
But a storm created by 1) Biden/Congress spending splurge and 2) excessive monetary stimulypto by The Federal (Feral) Reserve.
Now that The Fed is withdrawing the excess stimulus, we are seeing a world of pain for commercial real estate.
A financial climate change!"

"Days after Barry Sternlicht’s Starwood Capital Group defaulted on a $212.4 million mortgage backed by an Atlanta office tower, Bloomberg released an eye-opening interview
with the billionaire investor about mounting distress in US commercial real estate."

"“We’re in a Category 5 hurricane,” Sternlicht said in an interview on June 28 taped for a July 25 release in an upcoming episode of Bloomberg Wealth with David Rubenstein."

"Sternlicht warned, “It’s sort of a blackout hovering over the entire industry until we get some relief
or some understanding of what the Fed’s going to do over the longer term.”

(My Opinion) : The fall out from the Biden economic policies have affected commercial office space ,
and as well, the commercial and retail stores that depend on traffic of the workers downtown in office spaces.
When you add inflation into the mix, workers are no long happy or willing to endure hours in traffic just to earn an income or living wage.
There is much discontent among workers forced to attend office duty for a wage that doesn't indicate that employers appreciate the additional expenses that workers have to endure.
This discontent is reflected in commercial office space and retail stores, and thus commercial real estate investors are unable to meet their mortgage obligations.
Could this chaotic economic situation be anymore severe than the financial housing crisis of 2008 and 2009 ?

Many people in the know are saying that there is a delayed exhaustion of funds by investors due to inflation and the covid crisis.
Consider in the vicinity of your residence, how many store fronts are now vacant, or shopping malls that have papered over display windows ?
Expect it to get worse now that interest rates have climbed up from "free money" into commercial real estate strangulation.
Build Back Better has now become Build Back Bankruptcies !
Consider this a "situational awareness" warning ...