What has been lost in the housing talk recovery is the grim statistics that commercial real estate has fallen 37 percent in value in the last year. This wouldn’t be such a big problem aside from the tiny detail that some $3 trillion in commercial real estate loans are still outstanding. The commercial real estate debacle is already happening with defaults reaching 16 year highs. This is already occurring before many of the commercial real estate loans reach their refinance dates. In some instances banks are simply ignoring non-payment and giving borrowers a few more months or even years. Why? Because they can still claim the note is current and claim the asset at inflated values.
Yet this is a game we are all familiar with. Suspending mark to market has always been a method for the U.S. Treasury and Federal Reserve to skirt any real accounting from Wall Street. If we look at the current FDIC insured bank balance sheet, we can see that many more problems lie ahead for commercial real estate:
LINK HERE
As Of Jan 1 2010 State of Georgia Accepts GOLD and SILVER as Currency Payment and Deposit
LINK HERE
I see many many Commercial Real Estate propeties with AVAILABLE signs on them.
ReplyDeleteOf course that probably means all of the JOBS with that Business are gone.
And of course all of those people are not paying INCOME TAX and probably not BUYING as much. So the State revenue is down.
And what is OBAMA pushing HEALTH CARE instead of pushing real JOB GROWTH.
Call or Fax your Congressman and demand they not support the Health Care bill and also to support Ron Paul's "Audit the Federal Reserve".
The commerical real estate collapse will be worse than the residential real estate market. Commerical real estate values went sky high during the real estate bubble years. Here are some examples from my city of Chicago.
ReplyDeleteCommercial properties in 1997 were expensive. But not outrageously expensive. Your total monthly cost would still be covered by your revenues coming in. But in 2001 prices took off like a rocket. By 2005 it was nearly impossible for a business owner to cover his mortgage payments with the revenues coming in. So a lot of speculators and "investors" only made short term loans and some banks even gave out interest only loans with the anticipation that reale estate values would only go up and they can never go down. It all sounds too familiar.
Now, a lot of loans are due and a lot of speculators, investors, owners, etc... are falling back on their payments and thus banks are acting as if it's all ok.
I'm amazed by the number of commercial vacancies, especially smaller strip malls built in the last couple years. Other vacancies are anchored by large stores like Target and Lowes, Best Buy, etc.These are new shopping centers..Several jewelry stores closed in the mall anchored by Dillards, JCP, and Belks. Wait for details early next year from H. Davidowitz (retail consultant) on Tech Ticker and other news interviews.
ReplyDeleteThank you Georgia for taking the step in making gold/silver coins actual currency as payment for debt as established by our Constitution. I hope Texas follows suit.
ReplyDeleteLarge commercial buildings will probably be taken over by Fema for containment of Americans that do a little too much complaining.
ReplyDeleteOT First Premier Bank just announced 79.9% APR on their credits cards.
ReplyDeleteJust in case anyone thinks the government is putting a leash on bankster abuse.
The banksters control the government.
4:14, I agree, we need gold/silver coins as actual currency in TX. Is there an organized movement that you know of in TX?
ReplyDeleteMeanwhile, I live in a town where the economy is considered good, as there are 50K+ students here and huge FEMA headquarters with thousands of employees, and I see all kinds of vacant commercial property, more than I have ever seen before.
Going into 2010, it's looking more and more that we will see "TSHF" scenario.
If you have finally awaken from your sheeple BRAINED WASHED MIND CONTROL state, PREPARE; storable food, gold & silver, water filter, lots of ammo & survival gear.
Time is short, very very short.
Prepare NOW!
I live in Kansas, where the recession has not hit like other states. However, I notice more empty CRE than I have in the past. The problem, as I see it, is it's getting worse--not better.
ReplyDelete4:45 No organized movement in Texas as of yet that I know of but I sent the Georgia link to Gov Perry and State Senator Odgen to make them aware and asked that they implement a like system.
ReplyDeleteThe wave of commercial foreclosures already came... now it will start hitting hard
ReplyDeleteThe first step to buying commercial real estate property is knowing what you are buying. Commercial real estate refers to any real property, excluding a dwelling, or property with one to four dwelling units used for residential purposes. The phrase “commercial real estate"" consists of (but is not limited to) properties used for industrial, commercial, medical or educational purposes, and properties with four or more units used for residential purposes. You may refer the link commercial conveyancing for more details.
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