Aug. 10 (Bloomberg) -- The collapse in commercial real estate is preventing Federal Reserve Chairman Ben S. Bernanke from declaring the economy and financial markets are healed.
Property values have fallen 35 percent since October 2007, according to Moodys Investors Service. Thats making it tough for owners to refinance almost $165 billion of mortgages for skyscrapers, shopping malls and hotels this year, pressuring companies such as Maguire Properties Inc., the largest office landlord in downtown Los Angeles, to put buildings up for sale.
Negative Fundamental
Demand for commercial space comes from employment and the income generated by that employment, said University of Pennsylvania Professor Joseph Gyourko, director of the Wharton Schools Samuel Zell and Robert Lurie Real Estate Center in Philadelphia. Mounting job losses are a really significant negative fundamental, signaling that conditions are going to be tough for the industry for a while, he said.
That may spill over into mounting losses at some banks. Forty-seven percent of loans at the 7,000-plus smaller U.S. lenders are in commercial real estate, compared with 17 percent for the biggest banks, according to New York-based Goldman Sachs Group Inc.
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Paul Harvey is the only person who explained this for me...
If 14 trillion dollars vanished from the economy... the government can inject 14 trillion into the economy in the form of targeted relief ... before we get inflation.
NOBODY wants us to know this... because the gangsters of business want it both ways.
they want the bailouts... if the money goes to healthcare - they grab the megaphones of Jewish media and yell INFLATION!!
gangsters in both parties have hijacked our beautiful capitalism. FIRE THEM ALL, THESE SOCIALIST FUCKS!
my favorite stocks for 2010: canned foods, guns, and ammo.
the ultimate bartering tool in 2030: a giant costco bottle of jack daniels you bought in today's dollars. i figure i've got 20 years to stack my entire attic with booze. i'll be the richest man on my street.
someone's going to clamor for a bailout. someone's going to mount a public relations campaign appealing for a bailout. but this does not mean that imprudent lenders need to have a bailout to "save" our economy, no matter what claims are made to support Keynesian "stimulus" or "multiplier" effects.
first you claim that there will be no money, then you claim that more money will be printed, completely changing your argument.
If people cannot get "their" money at the bank, then the money that remains in circulation will increase in value (people will mark down prices to reduce inventory and get more cash to meet payments).
If more money is printed (and if that money can be delivered to depositors-consumers), existing money in circulation is devalued (prices rise). Two different scenarios
Autoshare makes certain YouTube activities public on the services you choose. Select only the services you are comfortable with - like Facebook, Twitter, or Google Reader - to let your friends know what you like on YouTube. You can turn Autoshare off at any time.
If 14 trillion dollars vanished from the economy... the government can inject 14 trillion into the economy in the form of targeted relief ... before we get inflation.
NOBODY wants us to know this... because the gangsters of business want it both ways.
they want the bailouts... if the money goes to healthcare - they grab the megaphones of Jewish media and yell INFLATION!!
gangsters in both parties have hijacked our beautiful capitalism. FIRE THEM ALL, THESE SOCIALIST FUCKS!
my favorite stocks for 2010: canned foods, guns, and ammo.
the ultimate bartering tool in 2030: a giant costco bottle of jack daniels you bought in today's dollars. i figure i've got 20 years to stack my entire attic with booze. i'll be the richest man on my street.
someone's going to clamor for a bailout. someone's going to mount a public relations campaign appealing for a bailout. but this does not mean that imprudent lenders need to have a bailout to "save" our economy, no matter what claims are made to support Keynesian "stimulus" or "multiplier" effects.
If people cannot get "their" money at the bank, then the money that remains in circulation will increase in value (people will mark down prices to reduce inventory and get more cash to meet payments).
If more money is printed (and if that money can be delivered to depositors-consumers), existing money in circulation is devalued (prices rise). Two different scenarios