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Fed sounds alarm on commercial real estate, business bankruptcy
https://www.americanbanker.com ^ | 2/22/2021 | americanbanker

Posted on 02/22/2021 5:13:00 PM PST by RomanSoldier19

The Federal Reserve warned of significant risks of business bankruptcies and steep drops in commercial real estate prices in a report published on Friday.

“Business leverage now stands near historical highs,” the central bank said in its semiannual Monetary Policy Report to Congress. “Insolvency risks at small and medium-sized firms, as well as at some large firms, remain considerable.”

In part encouraged by government and Fed programs, businesses have taken on more debt over the past year as they’ve struggled to deal with the economic and financial fallout from COVID-19, including in some cases forced shutdowns.

The Fed report, which provides lawmakers with an update on economic and financial developments and monetary policy, was published on the central bank’s website ahead of Chair Jerome Powell’s testimony before the Senate Banking Committee on Tuesday and the House Financial Services panel a day later.

In the report, the Fed voiced hopes of an end to the pandemic later this year, though it cautioned that pitfalls remained.

In particular, it said that commercial real estate prices “appear susceptible to sharp declines” from historically high levels. That could particularly prove to be the case if the level of distressed sales picks up or if the pandemic leads to longer-term declines in demand, it said.

(Excerpt) Read more at americanbanker.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bankrupcty; collapse; depression; realestate
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1 posted on 02/22/2021 5:13:00 PM PST by RomanSoldier19
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To: RomanSoldier19

Just wait until the Dems ram through $15/hr minimum wage.


2 posted on 02/22/2021 5:15:48 PM PST by Blood of Tyrants (DemocRats would burn the country to the ground to be absolute rulers over the ashes.)
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To: RomanSoldier19

Anyone with a clue knew this 10 months ago...


3 posted on 02/22/2021 5:16:21 PM PST by wny ( s)
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To: Blood of Tyrants

And $3 to $4 a gallon gas won’t help either


4 posted on 02/22/2021 5:17:16 PM PST by Josa
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To: Blood of Tyrants

$15/hour means a bull market for robots and off the books illegals.


5 posted on 02/22/2021 5:18:01 PM PST by nascarnation
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To: nascarnation

So do we switch to cash or bonds/treasury bills?


6 posted on 02/22/2021 5:19:19 PM PST by DIRTYSECRET (`)
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To: DIRTYSECRET

I wish I knew where to go.
I still have a lot of silver and gold I acquired in the Carter years.


7 posted on 02/22/2021 5:20:28 PM PST by nascarnation
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To: RomanSoldier19

The group in power now has always had the plan to bankrupt America. It brings us into the great reset, the NWO, and all of that which is what they are all about.


8 posted on 02/22/2021 5:25:14 PM PST by Revel
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To: RomanSoldier19

How about personal bankruptcies?
People’s credit cards should start piling up after UI benefits expire.
I can’t imagine everyone is up to date on rent and mortgage either.
Lots of underemployed, and the labor force has decreased.


9 posted on 02/22/2021 5:25:25 PM PST by EEGator
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To: RomanSoldier19

All according to plan.


10 posted on 02/22/2021 5:26:31 PM PST by TexasM1A
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To: wny

Yes, this was predicted some time ago.


11 posted on 02/22/2021 5:28:06 PM PST by Huskrrrr (Pronouns? I need no stinkin pronouns.)
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To: nascarnation

Or under the table Americans who are drawing the additional $400/wk unemployment.


12 posted on 02/22/2021 5:28:58 PM PST by Blood of Tyrants (DemocRats would burn the country to the ground to be absolute rulers over the ashes.)
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To: RomanSoldier19; All
Regarding lockdowns, patriots please work with your state lawmakers to amend your respective state constitutions based on the following "tar and feathers” (figure of speech) lockdown criteria.
13 posted on 02/22/2021 5:29:32 PM PST by Amendment10
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To: EEGator

14 posted on 02/22/2021 5:29:42 PM PST by RomanSoldier19 (Game over, man! Game over! ; : rem ad triarios redisse is)
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To: RomanSoldier19

Enter Chinese investors.


15 posted on 02/22/2021 5:32:04 PM PST by Huskrrrr (Pronouns? I need no stinkin pronouns.)
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To: nascarnation

Office buildings are about to become condos here. Late 2021 early 22, buy 2-3 and sell them in a few months or years. They cannot build apts fast enough for everyone that is showing up to work. 75 degrees here in Ft Worth today, snow and ice are all gone.


16 posted on 02/22/2021 5:33:28 PM PST by Jolla
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To: RomanSoldier19

Owners of office buildings are totally screwed. Most of them probably have non-recourse loans, which means the banks are even more screwed. Retail strip centers, which these days consist mostly of restaurants, hair salons and nail salons, in the suburbs are probably going to be fine.


17 posted on 02/22/2021 5:36:05 PM PST by KevinB (''... and to the Banana Republic for which it stands ...")
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To: RomanSoldier19

Government forces the closure of businesses for a year. Drives companies into bankruptcy. What did they think would happen to the buildings the businesses were renting?


18 posted on 02/22/2021 5:38:42 PM PST by Flick Lives (“Today we celebrate the first glorious anniversary of the Information Purification Directives.”)
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To: Huskrrrr

“Yes, this was predicted some time ago.”

It’s been an ongoing prediction for 50 years.


19 posted on 02/22/2021 5:38:50 PM PST by SaxxonWoods (The Republican Party is dead. Long live the MAGA Party.)
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To: RomanSoldier19
Typical Hegelian Dialect. The gubmint created this with all the lockdowns and COVID-19 restrictions. I bet now the next step is a bailout.

Oh, and if this stupid $15 minimum wage bill passes, my 2nd part-time job is a goner. My boss already said he's letting go the part-timers and have the full-timers work longer hours. Ugh! And I just bought a new car too!!

20 posted on 02/22/2021 5:41:20 PM PST by Extremely Extreme Extremist (Trust the plan of the 17th letter of the English alphabet!)
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