Posted on 03/07/2024 12:56:40 PM PST by ChicagoConservative27
Federal Reserve Chair Jerome Powell said Thursday he expects to see some banks fail due to their exposure to the commercial real estate sector, which has declined significantly in value following the shift to remote work.
Powell said the banks that are in trouble with falling office space and retail assets are not the big banks, which were designated as “systemically important” in the aftermath of the 2008 financial crisis. That episode, which resulted in a taxpayer bailout of the financial sector, was also triggered by unsound real estate assets.
Rather, the banks at risk of failure now Powell identified as smaller and medium-sized.
“This is a problem we’ll be working on for years more, I’m sure. There will be bank failures,” he said during a Thursday hearing on the Fed’s monetary policy in the Senate Banking Committee.
(Excerpt) Read more at thehill.com ...
The economy is doing fine.
The price of being ruled by the Branch Covidians.
And down in the article, he says these are not “systemically important” banks like the ones in 2008.
Translation: No bailouts. Bank runs are out there in our future.
Another problem caused 100% by poor government decisions.
It might bring in conservative thinking, but it likely won't.
Liberalism perverts everything good, making everything appeal to libertines, at the cost of everyone else. It is socialism, on a small scale, and should always be derided and defunded.
Thatcher said it right when she said they eventually run out of other people's money.
Whwn commercial real estate goes down the entire inner city ecosystem that fed off it goes down. Urban meltdown.
It is more to do with employees realizing they were wasting their lives in the car.
No one who can avoid that is ever going to go to the office again.
The three failures in 2023 almost equal around 60% of the 2008 banking failures.
What’s coming is far worse than 2008.
Bank bailout fund ends on Monday.
I will never go to an office again.
High IQ, hard workers are becoming fewer and fewer.
Companies that don’t evolve to remote work will be stuck with the lazy and stupid.(certain jobs and fields don’t apply)
Exactly, people will no longer pay to eat or drink in the city - they'll have it delivered to their homes or they'll make it themselves. Thus, no need for hourly food service or restaurant workers all over these cities.
lil black tinkerbell said yesterday that the effects of bidenomics would be felt for years ...
Each of the above remarks hve some validity, but they do miss the real issue
\\The real issue is the FED. Making money available at little more han zero interest rates and then after investors get involved in very expense projects requiring huge loans, raising the rates to the present high numbers has and will force bankruptcy on builders, extensive unemployment on workers....and a chain reaction throughout the economy.
The FED is a branch office of the insane asylum.
The gifts of government keep on giving. The Covid shutdown protocols helped accelerate the work from home scenario (Less office infrastructure needed, and people don’t want to commute or deal with the crap in the city). Next, banks and pension funds that invested in real estate through loans and ownership have been killed with the rise in interest rates. Bank failures are never about just one thing, but the one underlying cause to all of them is government policy. Governments move from one fiasco to another, but always lay the blame elsewhere.
Chomo Joe will convert commercial real estate to housing for illegal aliens.
Yeah, I agree. This is a spooky time to anyone sane.
“......”
Compared to Inflation, the current numbers are anything but high.
And who agrees that 2% is a good target?
“...raising the rates to the present high numbers...”
Compared to Inflation, the current numbers are anything but high.
And who agrees that 2% is a good target?
State of the Union: Biden to push wealth, company tax ideas
BUT IS HE, AND CONGRESS GOING TO PAY THEIR FAIR SHARE?
https://www.reuters.com/world/us/state-union-biden-push-wealth-company-tax-ideas-2024-03-07/
True. And much of that urban ecosystem is based on a hoard of relatively low wage jobs, which are the first to go when the business ecology collapses. Shops and restaurant jobs, housekeeping, janitorial jobs, drivers, maintenance workers, all dependent on there being a mass of humanity coming in to town to work every day. All most likely democrat voters too, if that helps.
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