( – promoted by buhdydharma )
Wednesday’s report from the Congressional Oversight Panel makes it very clear that while things may feel relatively stable right now on the commercial real estate front, the real bomb hits in 2011. Banks could lose $200 – $300 billion, and ‘every American’ could be affected:
The full force of the commercial real estate problem will be felt over the next three years and beyond, according to the panel’s February assessment, which means it starts to get worse starting today.
Download .pdf here (189 pages)
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freeze “all” domestic spending, I’ll bet…
Ahem.
how you define the economy. Interestingly my urban neighborhood has two ugly large condo complexes that started before the shit hit the fan. We all thought as we watched them being built that they were the slums of the future. They built the second one after the the financial crisis. They are over priced and nasty housing that is not affordable and shows no regard for the neighborhoods they invade. The signs on the fence in front of this empty monstrosity declare them to be financed by a couple of out of state corporations and built by our most notorious ‘developers’.
Our city via Metro is developing inner city density to help keep our urban boundary’s intact. This is a good thing and will help both the countryside and the urban sprawl. It has turned into into a frenzy of speculation by nasty investment/developers. They bring little benefit to the city or people housing needs and jacking up property prices so that no one could afford them.
In the last decades the developers have put up high end office space and high rises for the rich only. The city council gives them permits and fudges the zoning. If their bubble driven speculative development falls starting today all the more reason for local economies to get real and stop trying to make a fast buck and call it growth.
New Mexico and Oregon are both considering starting their own banks. The Bank of Oregon would keep the money here and loan to the local economy and businesses over the corporate Visigoths who take but put nothing back into the real economy. Another good reason to move your money out of the too bigs and keep it in your real community, why let them use your money to speculate on their useless bubbles.
…. here in the middle of CA we already are littered with empty buildings all over the place- new and older ones.
They’re going to have to do another bail out, or force the banks to do re appraisals and financing, but I wonder if they will, or just let Darwinism continue to take its course.
Hmmm. Big money involved. They might bail ’em. I’ve noticed a lot of equity fund types are pouring money into the state legislature races. I had seen this earlier with the federal races.
It is already ugly.
I just saw a Whitehouse forecast for employment that said we’d be back down to 5% unemployment in a about four years. Not a chance, unless 10 million more people give up looking for a job and come out of the calculation.
The Republicans ruined us, and our politicians and Obama are too feckless to solve the problem.
via nakedcapitalism:
http://www.nakedcapitalism.com…
Yves is one hellasmartypants! I’ve learned alot over there…until they get all tekkinillogical and stuff…then I’m toast.