If You Thought the Housing Meltdown Was Bad…
Submitted by istvan32 on Tue, 11/10/2009 - 09:26
in
Every part of the sector – from multifamily apartment buildings to retail shopping centers, suburban office buildings, industrial facilities, and hotels – has accumulated a huge amount of defaulted or nonperforming paper. It’s an impossible, swaying structure that cannot long stand... http://revolutionarypolitics.com/?p=2951
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Very Good
Better than average read of what is out there.
As housing started
it's downward spiral commercial loans were given out like candy at a parade.
Older strip malls became vacant and some store owners moved to the new buildings to stir up business. Loans required zero money down payments and the transfer of leases never took hold. I think everyone can see this for themselves.
How long this lasts before defaults start to be realized is anyone's guess. The Fiat Reserve System once again gets a pass and the dollar will once again decline. As the dollar loses value would I be correct to assume deflation is really inflation? I get less with inflation and deflation.
Great article
I wonder if next year or beyond I could pick up a shop or some garden apartments for dirt cheap
Sad that the banks will just keep rolling these forward to oblivian, when real people could be making these assets worth something. I understand them not wanting to take a loss but at their fantasy market prices everybody loses.
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"The consolidation of the states into one vast republic, sure to be aggressive abroad and despotic at home, will be the certain precursor of the ruin which has overwhelmed all those that have preceded it."
- Robert E. Lee, 1866
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RON PAUL 2012
bump. i would love to hear
bump. i would love to hear some discussion on this.
here's a thought:
Why is everyone saying that massive defaults on commercial paper are BAD for the dollar? This is GOOD for the dollar mid-term.
Right now, there is about $80 Trillion of IOU's in USD's that are backed by only about $2.5 Trillion actual dollars (I know, I know, in essence backed by "nothing" but look at this from a market perspective for a minute).
People have been treating these IOU's as if they are actually as good as the dollars backed by them - once they find out they are absolutely NOT, the amount of money in velocity will crawl to a stall and the perceived value of the "as good as money" IOU's will be vaporized.
This is MASSIVELY deflationary, and exactly what i've been saying for a long time. It's also one of the reasons I have been saying I think gold is due for a pretty serious mid-term correction to shake off the speculators (admit it - most of the major additions to the gold market in money terms are for speculative/capital gains nature and NOT for wealth preservation - see COT reports et al for reference).
Hold on to your FRN's a little longer folks - that's going to be a rare "commodity" in the near future.
Derek
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Progress is precisely that which the rules and regulations did not foresee. - Ludwig Von Mises.
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Progress is precisely that which the rules and regulations did not foresee. - Ludwig Von Mises.