Government Fears Commercial Real Estate Defaults: WSJ

WSJ/FoxNews ^ | 8/31/09 | Dunstan Prial

[Kartographer]

If those commercial loans turn bad the domino effect would ripple through the economy.

[Kartographer]

Is another 'bubble' about to burst?

[mbarker12474]

Take over banks, cars, property.

Churches next.

[Paladin2]

Fears? It’s their own creation. Frankenstein is Frankenstein no matter what they claim.

[freespirited]

Gerald Celente predicted this earlier in the year. I think he expected it sooner, so he might be off by a few months. But I have little doubt that he’ll be right again.

[Kartographer]

The chicken place? Hmmm sounds racial to me! (sarc)

[Oldexpat]

We were just out on a boat looking at the skyline of San Deigo over North Island. It is starting to look a lot like Manhattan we noted. However, we also noted that many of those new buildings are empty or nearly empty. Condo’s galore that haven’t sold.
Between these kind of projects and commercial realestate going bad..we are in for another round of bank failures.

[freespirited]

I cant imagine San Diego looking like Manhattan. I just cant.

[2banana]

Don't worry - we can just make another 2 Trillion dollar bailout. It works like magic!!!

[STONEWALLS]

...the Government is just now starting to worry about commercial defaults?!!.....that threat has been mentioned on Free Republic for months now.

[April Lexington]

This is a great time to but a San Diego water view condo. Once it becomes a Chinese province, property values will soar and you'll be rich!

[jveritas]

Do not worry ladies and gentlemen, we have Goldman Sachs to count on to continue the super bubble market we are seeing.

[conservativemusician]

Wait til the commercial ARMs reset.

[April Lexington]

Well, Obama has terrified the wealthy into Galt's Gulch and he has flattened the economy and he has presided over an explosion of new unemployed and he has encouraged the credit card companies to severly restrict credit. Hmmm.... maybe people aren't shoping all that much anymore...

Who needs commercial space?

[Kartographer]

Defaults, foreclosers, bank failures OH MY! Defaults, foreclosers, bank failures OH MY! Defaults, foreclosers, bank .....

[Nervous Tick]

>> ...the Government is just now starting to worry about commercial defaults?!!.....that threat has been mentioned on Free Republic for months now.

The reason they’re just now “worrying” about it is, they need an excuse to extort another trillion in bailout money so Bambi can build his affirmative-action “domestic security force”.

[Uncle Hal]

I am a retired commercial real estate broker. I can tell you we have only seen the tip of the iceberg. It is going to get a lot worse before it gets any better. The foreclosures in this area will make the residential segment look like a picnic in the park. The financial institutions will take another big hit

[sionnsar]

I just took a walk around our business park today. So many empty buildings! But not as many as the last downturn and several businesses had completely full lots with cars on the street.