Posted on 05/03/2009 10:49:36 PM PDT by TigerLikesRooster
Fed to launch program bolstering commercial loans in June
Plan will provide five-year loans to revive business real estate market
By Ronald D. Orol, MarketWatch
Last update: 3:50 p.m. EDT May 1, 2009
WASHINGTON (MarketWatch) -- The Federal Reserve announced Friday it will take a key consumer-lending program and expanded it to help jump-start the commercial real-estate lending industry.
The program, which will be launched in June, will provide government five-year loans to investors so they can buy commercial real estate securities. The goal is to revive lending in this market. The program is part of a larger Federal Reserve endeavor called the Term Asset Backed Lending Program launched in November, which seeks to bolster the market for consumer loans, automotive loans, credit card debt and small business loans.
(Excerpt) Read more at marketwatch.com ...
Ping!
...after watching them manhandle banks and the auto industry, you’d be a fool to take a “loan” from Obama...
Commercial real estate is going to collapse, and the banks will be back for MORE bailouts, and PelosiObama corp will call for another trillion dollar stimulus program for garbage social programs.
After the Chrysler bond fiasco for bondholders in FIRST position, why would anyone buy the commercial paper? Obama can change the rules at any time, lower the interest, lower the principal, and cram it down investors’ throats.
Offices have a 14.4% vacancy rate right now. You could hand commercial money out for free and the cash flow from those investments is still going to decline because rents will come down to raise that occupancy rate.
And lower cash-flow translates into lower property values...except when you have a bubble (prior to the pop, anyway).
We just sold a large piece of land to a bank. That was a surprise, needless to say. They are breaking ground on it 45 days after the closing. It’s not all bad out there I suppose.
Yep just throw some money at it. It’s obvious that Goldman, JPM, and the rest of the usual suspects would otherwise take a bath on commercial real estate investments.
That’s just crazy. Code violation fines for unoccupied condo’s?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.