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Developers Ask U.S. for Bailout as Massive Debt Looms
Wall Street Journal ^ | December 22, 2008 | WSJ

Posted on 12/22/2008 1:08:22 AM PST by do the dhue

With a record amount of commercial real-estate debt coming due, some of the country's biggest property developers have become the latest to go hat-in-hand to the government for assistance.

They're warning policymakers that thousands of office complexes, hotels, shopping centers and other commercial buildings are headed into defaults, foreclosures and bankruptcies. The reason: according to research firm Foresight Analytics LCC, $530 billion of commercial mortgages will be coming due for refinancing in the next three years -- with about $160 billion maturing in the next year. Credit, meanwhile, is practically nonexistent and cash flows from commercial property are siphoning off.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Crime/Corruption; Extended News; News/Current Events
KEYWORDS: 110th; bailout; bailoutnation; debt; developers; heckno; justsayno; no; nobailout
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To: skr
That is the way I see it. This is where it all starts.

Now, we (the taxpayer) was responsible for backing the loans. I can see why we would have to bail the bad loans out. But how are we responsible for GM, Devolpers, and the like? Bailing all the rest out is not a free market.

41 posted on 12/22/2008 2:02:59 AM PST by do the dhue (They've got us surrounded again. The poor bastards. - One of General Abram's men)
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To: Bag
I want to be BAILED OUT, TOO!!

That's like the pig saying he wants to go to the barbeque.

42 posted on 12/22/2008 2:04:19 AM PST by Mr Ramsbotham ("A laurel, and hearty handshake ....")
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To: DieHard the Hunter

43 posted on 12/22/2008 2:04:23 AM PST by do the dhue (They've got us surrounded again. The poor bastards. - One of General Abram's men)
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To: dennisw
Hey dennisw,

Don't take my shot across your bow seriously. I know she aint mine and I am just havin’ fun, you know?

44 posted on 12/22/2008 2:11:53 AM PST by do the dhue (They've got us surrounded again. The poor bastards. - One of General Abram's men)
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To: do the dhue

You mean like a sandwich? We share like Dodd-Kennedy?


45 posted on 12/22/2008 2:16:22 AM PST by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: dennisw

Hey, I don’t share. I am greedy when it comes to love!


46 posted on 12/22/2008 2:18:09 AM PST by do the dhue (They've got us surrounded again. The poor bastards. - One of General Abram's men)
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To: do the dhue
If we do not have our Christian roots to fall back on, we become Darwinian Survivalist. Greed sets in and the greed will destroy our way of life.

It's funny; I remember Wall Street coming out. Gordon Gecko chanted mantras like "Lunch is for wimps" and "Greed is good", and city traders all round the world copied him (and many of them got rich).

The point of that film was that Gecko was a heartless, avaricious crook, who thrived in the climate of asset stripping and foreclosure which was endemic in corporate America at the time, and it cloaked his actions with a veneer of respectability.

"Social Darwinism" is clearly involved when a handful of speculators in Wall Street have the power to force thousands of good hard-working Americans out of jobs purely because a client's stock can go up a point or two (temporarily) - and they do it because it suits their own back pockets.

I don't think we can maintain a cohesive, united, Christian nation if we're all being educated to believe that screwing each other over for a percentage is the "right" thing to do.

47 posted on 12/22/2008 2:19:42 AM PST by Don Stadt
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To: radu
What on earth were those idiots in DC thinking when they went for this bailout?

They're thinking about the continued conversion from a democratic republic to socialism by tightening their socialist grip on the economy.
48 posted on 12/22/2008 2:21:17 AM PST by Man50D (Fair Tax, you earn it, you keep it!)
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To: Don Stadt

I hear you Brother. I see it the same way.

Our businesses need, 5, 10, 25, and 50 year plans, but Wall Street doesn’t allow it. A lot of investor want their buck made fast. That is what will drive our business over the cliff.


49 posted on 12/22/2008 2:22:51 AM PST by do the dhue (They've got us surrounded again. The poor bastards. - One of General Abram's men)
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To: Man50D

HEAR HEAR!


50 posted on 12/22/2008 2:23:13 AM PST by do the dhue (They've got us surrounded again. The poor bastards. - One of General Abram's men)
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To: do the dhue

More like a “Bail-In”.

They’re just pouring more water into a sinking ship.


51 posted on 12/22/2008 2:29:25 AM PST by P.O.E. (Big Government is the opiate of the masses.)
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To: P.O.E.

You would think someone would fix the hole in the boat. I guess the commie socialist pigs don’t have a plan for that.


52 posted on 12/22/2008 2:34:15 AM PST by do the dhue (They've got us surrounded again. The poor bastards. - One of General Abram's men)
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To: DieHard the Hunter
I say again; WORST.PRESIDENT.EVER.

Yes, I lived through Carter and BC..

"“I’ve abandoned free-market principles to save the free market system” -President George W. Bush

53 posted on 12/22/2008 2:42:31 AM PST by realdifferent1 (We've tried the soap box, jury box and ballot box. Only one box left and it's time to use it.)
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Comment #54 Removed by Moderator

To: realdifferent1

> ““I’ve abandoned free-market principles to save the free market system” -President George W. Bush

Maybe he’s right — time will tell.

As with every good thing in life, when taken to an absolute position “Laissez Faire Laissez Passer” can lead to some absurd outcomes. Like this one.


55 posted on 12/22/2008 2:49:05 AM PST by DieHard the Hunter (Is mise an ceann-cinnidh. Cha ghéill mi do dhuine. Fàg am bealach.)
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To: DieHard the Hunter

I think he’s dead wrong.

In a few years the dollar is going to be worthless.

You can’t print endless dollars and not destroy it.


56 posted on 12/22/2008 2:51:02 AM PST by DB
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To: DB

> You can’t print endless dollars and not destroy it.

On that we agree. I could never agree to the rationale of floating currencies, taking them away from the gold standard. Maybe that’s an old-fashioned notion, but it did tend to have a dampening effect of turning on the money printing machine.


57 posted on 12/22/2008 2:54:08 AM PST by DieHard the Hunter (Is mise an ceann-cinnidh. Cha ghéill mi do dhuine. Fàg am bealach.)
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To: do the dhue
Banks have money to lend; they have tightened down credit standards.Instead of 80% LTV's they are looking at 75% or lower. Instead of cash flow coverage of 1.10/1 they now want 1.25/1.

The appraisal community is running for cover also. They are using higher capitalization rates than in the last couple ofyears. Instead of a 6% cap they are using 8.75% and higher.

All of this causes a big down push on commercial real estate values.

If a commercial property lender over financed, he will have a tough time refinancing his maturing debt.

58 posted on 12/22/2008 2:59:31 AM PST by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: do the dhue
At this point this has gotten completely out of hand. Every time the government steps in to bail out another business interest it fouls the waters further by distorting markets. The bailouts have to stop and companies are going to have to sink or swim on their own merits, or lack thereof. I somewhat understand the desire to prop these companies up as a way of preserving jobs for people but it really doesn't solve the underlying problems and no government can will private business into profitability.
59 posted on 12/22/2008 4:03:04 AM PST by RU88 (The false messiah can not change water into wine any more than he can get unity from diversity.)
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To: do the dhue

Oh dear God. When will this bailout madness end? Is there anyone left we have yet to bail out?


60 posted on 12/22/2008 4:17:57 AM PST by dinodino
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