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I got this today from a friend of mine who is a commercial mortgage broker who facilitates loans from pension funds and insurance companies for large developments like shopping centers, class A office and hospitals and warehousing. If this has been posted before or debunked as a contrived e-mail then I apologize in advance.

Happy Thanksgiving Day to all.

1 posted on 11/26/2009 9:17:00 AM PST by wardaddy
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To: wardaddy

WEll, accepting this on face value, the US, printing debt (”money”)thru Oct. 2010 will not get us satisfactorily to Nov. 2010.


2 posted on 11/26/2009 9:31:31 AM PST by givemELL (Does Taiwan Meet the Criteria to Qualify as an "Overseas Territory of the United States"? by Richar)
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To: wardaddy
3. Recovery will be slow. Unemployment will not drop back to more normal levels until 2014.

That is wishful thinking if health care passes and then GW legislation passes. If those two monstrosities pass, we are in for generations of European "Social Democracy" with structural 10% unemployment levels.

3 posted on 11/26/2009 9:32:04 AM PST by ProtectOurFreedom
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To: wardaddy

Bookmark


4 posted on 11/26/2009 9:32:23 AM PST by mikeandike
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To: wardaddy

This is exactly what this administration and its cronies want. Masses of people will continue on the Gov’t dole and will not want to relinquish its teat. The republicans are in this knee deep as well. This government is not of the people but rather over the people.


5 posted on 11/26/2009 9:33:34 AM PST by rj45mis
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To: wardaddy; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; Roy Tucker; GOPJ; ..

Ping!


6 posted on 11/26/2009 9:34:02 AM PST by TigerLikesRooster (LUV DIC -- L,U,V-shaped recession, Depression, Inflation, Collapse)
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To: wardaddy

http://www.opensecrets.org/orgs/list.php?order=A

http://www.salon.com/opinion/greenwald/2009/04/04/summers/

http://www.noquarterusa.net/blog/2008/09/21/baracks-wall-street-problem-is-now-americas/

http://www.americanthinker.com/2009/07/will_dems_allow_goldman_to_man.html

Pays to pay off obama


7 posted on 11/26/2009 9:38:56 AM PST by FromLori (FromLori)
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To: wardaddy
This is worth highlighting:

Giant make believe.

The free market seeking an equilibrium price is no longer economic policy. In short, the working of the free market is suspended. She went on to say it was administration policy that they will create new employment and by doing so they will boost the economy, and so then real estate values will return to old levels. There were 50 of the most senior and smartest real estate people in the room. They ripped her to pieces. It looked like one of the town hall meetings of August, except everyone there was a very senior, polished professional. At one point everyone was calling out or moaning at her. It was clear to all she had been given a few talking points and she was told to stick to them no matter how foolish she looked.

The group told her in no uncertain terms this is terrible public policy. They said for jobs to be created you need to lower rents so the cost of occupancy was at a level to encourage more hiring. If the loan is kept at old levels and building values not reduced, then landlords can't reduce rents to where they need to be to make taking space by tenants economically viable. Retailers costs remain higher than they should be making it harder to lower prices to induce sales. So there is a massive make believe going on. When I pressed the issue of political interference she said -what do you want us to do, bankrupt all the banks?

8 posted on 11/26/2009 9:40:29 AM PST by Lancey Howard
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To: wardaddy
In other words, the policy statement from last week says, if you can make an analysis that says even if the current value is less than the loan, if you can do a spreadsheet that shows if you extend for 3-5 years, and if the economy gets better, and if the loan can be amortized down to where the loan is no longer more than the value, then the lender does not have to take an impairment -write down.

I have no doubt that this is true. The shell-game over the last 2 years or so has been to keep the bad assets the big banks are holding from seeing the light of day. As the purported admin official alludes to, it would be the end of them.

In essence, they're perpetrating a fraud by using fake accounting methods to pretend that bad assets are good assets until they can figure out what to do with them.

It seems the Northeastern bankster clans are waiting for substantial inflation in the near future so that at least the nominal value of these assets can come up to par.

IOW, they'll be able to say "see, these assets really are (finally) worth what we paid for them a few years ago - so we haven't lost anything and our books are now balanced." Sure, a gallon of milk might have tripled by that time and the dollar may full decline, but at least their bad assets will look good nominally speaking.

The bankster clans want inflation, it's part of their business plan. Of course inflation will will suck the rest of us dry, as will the hundreds of billions we've already given them - but they'll be okay.

9 posted on 11/26/2009 9:59:37 AM PST by AAABEST (And the light shineth in darkness: and the darkness did not comprehend it)
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To: WallStreetCapitalist; JasonC; AndyJackson; Toddsterpatriot; SAJ
Comments, gentlemen?

NO flame wars, please.

I know barely enough to know that I am ignorant.

But based on empirical evidence so far I lean towards mild Austrian school.

Cheers!

10 posted on 11/26/2009 10:06:16 AM PST by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: wardaddy; NVDave
Happy Thanksgiving!

Interesting read.

13 posted on 11/26/2009 10:26:04 AM PST by Chgogal (American Mugabe, get your arse out of my bank, my car, my doctor's office & my elec. utility.)
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To: wardaddy
19. The Fed is intentionally holding rates at zero to try to force investors to invest in longer term riskier assets instead of collecting nothing on money market or CD's.

All the easier to cut your investment in half in a month, my dear.

17 posted on 11/26/2009 11:23:53 AM PST by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: wardaddy

Thanks for the post. I tend to believe scuttlebutt that rings true, even when the outlook is this dark.


19 posted on 11/26/2009 11:32:11 AM PST by Petronski (Global warming is indeed man-made: it was created by man-made manipulation of the data.)
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To: wardaddy

bm


24 posted on 11/26/2009 12:22:06 PM PST by Para-Ord.45
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To: wardaddy

Well, accepting this on face value, these points make sense. And it’s not pretty.


27 posted on 11/26/2009 5:02:10 PM PST by fightinJAG (Mr. President: Why did you appoint a bunch of Communists to your Administration?)
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To: wardaddy

Does the deferral of the foreclosure bubble until at least 2013 mean that housing values will crash AGAIN at that point?

If so, I’m wondering what homeowners need to factor in to their financial planning for the next decade or so.


29 posted on 11/26/2009 5:14:52 PM PST by fightinJAG (Mr. President: Why did you appoint a bunch of Communists to your Administration?)
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To: wardaddy
1. Not one expert was willing to predict what things will look like in 3 years other than they think it will be better 2. One top economist said if you are a developer find another career for the next 3 years-there is nothing to do and it may be 5 years 3. Recovery will be slow. Unemployment will not drop back to more normal levels until 2014. First they will bring back people on 4 day weeks to 5 days, then they will increase hours form the average 33 hours now, then part timers will become more full time, then they will start to hire.

However, even if (a BIG if, in my estimation) employment goes up to "more normal" levels in 5 years or so, the impact of these years of un- and underemployment will be felt for decades. People simply will remain behind where they would have been, which has huge implications for the real economy far into the future.

37 posted on 11/26/2009 5:59:42 PM PST by fightinJAG (Mr. President: Why did you appoint a bunch of Communists to your Administration?)
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To: wardaddy

Dammit, I WANT bad banks to go out of business.

Yesterday would have been fine with me, btw.

Too big to fail, my ass.


42 posted on 11/27/2009 3:19:23 AM PST by Daisyjane69 (Michael Reagan: "Welcome back, Dad, even if you're wearing a dress and bearing children this time)
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To: wardaddy

GREAT POST. Very informative. Thank you much for it. It reeks of honesty at least. Freepers need to know that things will not turn rosy anytime soon and plan accordingly. Soon after Obama’s election, I predicted he would be a one-term wonder because 4-years later the economy would still suck, he would be blamed for it, and his party would be punished for it. I stand firmly by that prediction, which is looking better and better all the time.

Thanks for some compelling info.


60 posted on 11/27/2009 12:40:12 PM PST by Freedom_Is_Not_Free (Depression Countdown: 50... 49... 48...)
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To: wardaddy

BM


68 posted on 11/28/2009 4:48:49 PM PST by Vision ("Did I not say to you that if you would believe, you would see the glory of God?" John 11:40)
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To: wardaddy

Does anyone have an email so this can be forwarded to CalPERS and maybe the #1 & #2 leaders of California government. Tough times ahead.


69 posted on 11/28/2009 4:58:52 PM PST by pointsal
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