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 ...
Just wait until the Dems ram through $15/hr minimum wage.
Anyone with a clue knew this 10 months ago...
And $3 to $4 a gallon gas won’t help either
$15/hour means a bull market for robots and off the books illegals.
So do we switch to cash or bonds/treasury bills?
I wish I knew where to go.
I still have a lot of silver and gold I acquired in the Carter years.
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.
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.
All according to plan.
Yes, this was predicted some time ago.
Or under the table Americans who are drawing the additional $400/wk unemployment.
State constitutions need to be amended to put time limits on lockdowns.
State constitutions also need to be amended to make state health and environmental protection officials elected by popular vote.
Constitutionally time-limited lockdowns need to automatically trigger special recall elections for governors, mayors and disaster officials who order lockdowns, also state lawmakers.
Finally, constitutions need to require people planning to run for state and local offices to escrow a refundable "recall deposit" before becoming a candidate, the deposit fully paying in advance for their possible recall elections if they are elected, amounts determined by law.
Enter Chinese investors.
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.
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.
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?
“Yes, this was predicted some time ago.”
It’s been an ongoing prediction for 50 years.
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!!
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