Archive for recession
Savvy Commercial Real Estate Investors are Sitting on Their Cash for Now
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Greetings from Albuquerque, New Mexico
‘A whole lot and a whole not’ sums up the last few weeks here on the blog.
How long has it been? Well, it has been one heck of a ride for the last few months. I have been attending a few luncheons, a couple seminars, and a handful of meetings and they are all saying the same thing:
‘Cash-rich investors are sitting on their money waiting for commercial real estate to hit bottom.’
Once it does, the assumption is the investors will jump in with both feet. This is what is called vulture investing. You can read more about it HERE.
The belief is that there will be a dramatic tipping point sometime late this year or early next. The assumption is that this ‘tipping point’ will start with the banks doing a mass liquidation of assets that are on their books. This huge sell off will be a mountain of discounted assets in order to move the assets quickly. This will led a domino effect that will dramatically pull values down even more. I guess the real question for me is what is taking so long? We are seeing a little bit of liquidation here and there but not what everyone was expecting.
Although there is some positive press that things are turning around. Most experts don’t buy it. What do you think?
When a question like this comes up, I start following the money. The problem is the money is not going anywhere….hence…there is my answer.
Until next time…..rob
make the pain go away!
Greetings from the commercial real estate metropolis of Cedar Crest, NM!
To be honest, I am not a fan of “Christmas” per se. I do love the true meaning of what Christmas is all about….but I sure have a hard time enjoying myself with all the ”stuff” that goes along with it. The crowds….the traffic….the lines….the shopping….the “events.” I for once….would like to have nothing to do over the Christmas holiday other than hangout with family and friends and watch college football. I do not even mind the traveling…it is just all the “stuff” that stresses me. I guess it does not help that my laptop died yesterday. Dadgum you Sony Vaio!
This last weekend I had the priviledge to go to Juarez Mexico and play Santa with friends of mine from Maui Mastermind. Maui Mastermind, via Estrellas Para Ninos, adopeted a couple of orphanages in Juarez. It was cool to hang out with the kids, play Santa, and get grounded on what is really important. Thanks to Steve, Andrea, Christine, Austin, and McKenna for doing most of the work and letting me tag along!
Now…..Commercial Real Estate News and Articles. One day…one of these days…there will be some good news….but not today. The headlines for today is all about a commercial real estate bailout…..wow!
| The Commercial Real Estate Bailout – Finance Blog – Felix Salmon … – I can see the case for extending Fed loans to hedge funds, when those hedge funds invest in consumer loans.
Kevin Drum – Mother Jones Blog: Commercial Real Estate – COMMERCIAL REAL ESTATE….The residential real estate market imploded two years ago, and the commercial real estate market has never been very far behind. Now big property developers are looking at their own armageddon and have started … Why Bailing Out Commercial Real Estate Is a Bad Idea | BNET … – BNET Financial Services provides daily industry news coverage and insights for managers and executives about the major companies in the financial sector. Commercial real estate industry asks for bailout – BizTimes – With a record amount of commercial real-estate debt coming due in the first quarter, some of the nation’s largest property developers are asking for federal assistance, according to a report in The Wall Street Journal today. … A Bailout for Commercial Real Estate? – “Right now, we believe there is insufficient systemic capacity to refinance expiring, performing commercial real-estate loans,” reads a letter from a dozen commercial real estate trade groups to Treasury Sec. … Let the 2009 Forecasts Begin, Commercial Real Estate, Money Supply … – by Addison Wiggin & Ian Mathias 2009 to be “really bad” says IMF… will the recession exceed expectations? The second wave of. Commercial real estate developers seek bailout – Trackpads Community – In a letter to Paulson, commercial real estate leaders warn that thousands of properties are in danger of foreclosure because current financing is coming due and new financing is hard to come by. The industry envisions a credit facility … Commercial Real Estate To Bottom In 2010 – 2011 – For now, Moody’s says that the deepening recession and the reduced availability of financing have heightened the risks for the US commercial real estate sector. The ratings agency cites the retail sector as most exposed to very … |
Until next time…..rob
Commercial Real Estate Investing: The Coming Depression?
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Greetings from Cedar Crest, NM….still cold but no snow….what a shame.
Where is the good news? Where? There isn’t any!
All the talk of the “big three” automakers waiting for a bailout is unreal. I read that if just one of the big three were to go under….we would enter into a depression. Are you serious?….or is that just “hard talk” from an emotional economist?
Well, Emily reminded me of a blog I wrote back in February of this year. Actually…I did not write it….Glenn Beck did. Glenn (I can call him by his first name since we will be friends someday) wrote about Nouriel Roubini’s outlook on the economy. You can read the post HERE. Per Roubini, we are closer to a meltdown than most people think.
To make things a little more interesting (for a lack of a better word)…I got an invitation email to attend a webinar hosted by Harry S. Dent titled The Coming Depression – Investment Strategies in 2009 and Beyond. The email states “During the next coming depression…..” WOW!
So what to make of all this?
Well…..better to be prepared than sorry? Then how does one prepare? Is this Y2K all over again? You remember Y2K….not even a fizzle.
Enjoy these video? Well…enjoy is the wrong word…..
Roubini: Worst yet to come
CNN Your Money: Talks of Great Depression Coming
Until next time…..rob
Other Post from around the web:
Mish’s Global Economic Trend Analysis: Prepare For Depression … – Deflation has already set in and it’s now realistic to start talking about another “D” word, this one being depression. Before we can use a word, we must define it. For the sake of argument, let’s define depression as unemployment of …
CNN on post-Great Depression recessions suffered by US (Thomas … – CNN on post-Great Depression recessions suffered by US. Interesting bit: Average US recession (11 since 1930s) lasts less than a year (or 6-12 months) except for two (early 1970s and early 1980s) that were global ones, in addition. …
America’s Second Great Depression Has Started :: The Market Oracle … – America’s Second Great Depression Has Started :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website.
TruthNews.us » Blog Archive » Corporate Debt Protection Costs … – The cost of protecting corporate debt from default jumped to a record in Europe and neared a high in the U.S. amid concern that the global recession will sink into a depression. Credit-default swaps on a benchmark index tied to below- …
Cramer: Depression Comparisons are ‘Scare Tactics’ | NewsBusters.org – Recent contractions in gross domestic product are also far from the huge drops seen during the Great Depression. And current stock market volatility doesn’t compare to the 90 percent decline during the Depression. …
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