Posted on 12/17/2009 3:01:41 PM PST by FromLori
What has been lost in the housing talk recovery is the grim statistics that commercial real estate has fallen 37 percent in value in the last year. This wouldn’t be such a big problem aside from the tiny detail that some $3 trillion in commercial real estate loans are still outstanding. The commercial real estate debacle is already happening with defaults reaching 16 year highs. This is already occurring before many of the commercial real estate loans reach their refinance dates. In some instances banks are simply ignoring non-payment and giving borrowers a few more months or even years. Why? Because they can still claim the note is current and claim the asset at inflated values. Yet this is a game we are all familiar with. Suspending mark to market has always been a method for the U.S. Treasury and Federal Reserve to skirt any real accounting from Wall Street. If we look at the current FDIC insured bank balance sheet, we can see that many more problems lie ahead for commercial real estate:
(Excerpt) Read more at mybudget360.com ...
ping
Is this hope and change at work? When the mtges cant be paid cuzz the tenants are either gone or hurting?
I think they are like others hoping things will change.
Obviously they have discounted the future and see no reason to hang in. They don’t see an economy happening.
There are three new buildings in the downtown with first-floor retail space and two stories of condos above them. They were built within the last three years, and here's where things stand: (1) none of the commercial space has ever been leased, and (2) most of the condos were never sold, and are being rented as apartments if they are occupied at all.
You can’t eat hope and add this to the other problems in housing yikes!
http://www.freerepublic.com/focus/news/2409931/posts?page=4
I have read so many similar stories from all over the country and then just today morgan stanley walked away from five large buildings
I pretty much know what is going on in commercial development in my community...and it’s dead. Has been for a year. Other than a large hospital being built, all commercial work has ceased. There are vacancies, but we were a rapidly growing community and now it’s ground to a halt. I was talking to a developer on Friday, and he says they are just treading water, and are out looking to pick off some decent properties from developers who are under a lot of stress. He said there are several big name commercial developers who may go under in the next six months, and for every 10 properties they own, only 2 or 3 are good investments. The rest are seriously upside down. It’s those defaults that are going to rock the economy.
Businesses can't pay their rents unless consumers buy their products and services.
Consumers can't buy stuff unless they have incomes, and disposable income for purchases beyond subsistence level.
Neo-con RINOs and Democrats have worked together for more than two decades to destroy the middle class by importing illegal and visa-worker labor, out-sourcing manufacturing and high-tech jobs, shifting more of the tax burden and capital risk to working people.
Why don't we try a conservative approach for a change. We haven't had a real one of those since McKinley.
I would imagine all those loans are mixed in with everything else like housing was and we know how bad that turned out there are trillions in derivatives things are much worse then our government is saying.
Agree wholeheartedly I know many won’t like this but I think we should not only kick out the illegal aliens but I think we should halt immigration at least until our country was in better shape.
No one seems to mention the amount of people they keep letting in legally or illegally yet they cry about our resources and say that humans are causing climate gate.
You would think if they really believed that they would want a halt to it wouldn’t you?
Then we lose another thousand banks ?
No. but it points squarely at the lies the Obama govt is pumping.
Every last loan is hoping things are going to change....
But the lies keep coming.
Worst part is the debt he is pumping. Soon to be unserviceable debt.... but thats all a part of his agenda of busting America.
What difference does it make, because they are already ‘ignoring’ foreclosed businesses....? They will suddenly one day say oh ooops your foreclosed ,now?
What’s wrong with allowing educated English speaking people to come to the country? They need places to live and stores to buy things, wouldn’t that go some way to clearing excess real estate obth residential and commerical? If you’re concerned that they would be a drain on social services, then surely the solution is to reduce social services and cut taxes? Then the slackers won’t bother to come to this country leaving us with educated, motivated, English speaking contributors to American success. Not so bad, imho.
Why “English speaking.” From what I see here in New York, the educated and wealthy people buying up real estate are not from English speaking countries. The Poms aint exactly in great financial shape either.
I don’t know the number but it will be a lot we already have a large problem bank list but the FDIC is broke if not for that I think we would have already had many more closed.
Some Sierra Clubbers tried to make that point and got booted off the controlling boards.
I guess political correctness trumps the environment even in an environmental organization.
If we could come up with some reasonable argument that the global warming industry is a racist/sexist/homophobic scam then even the libs would have to run away from it.
I think Morgan Stanley jinglemail is a significant bellwether:
The Pale Rider is coming, and he’s bringing hell with him.
Well besides the fact that there are plenty of Americans off work who need the jobs there is the fact that they won’t allow just those kinds of immigrants they would say it is racist. Obviously they will not cut the social services as it is now we pay even for illegal aliens to use the hospital emergency rooms as their private doctors so that is pretty much a joke.
Then there are reported water shortages.
And the other point was the climate gate people who claim people are causing global warming isn’t it hypocritical to want to bring in even more people then.
Massive unintended consequences are tied to this move...
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