Posted on 04/23/2009 5:59:45 AM PDT by george76
Note that small shopping plazas already have a lot of vacancies, some of which are major nationwide stores. Although, uniformed pricing discount stores such as Dollar Tree, coupled with decently stocked thrift shops have been gaining due to the cautious consumers.
The Commercial Real Estate Time Bomb has gone off but it has been lost in the euphoria of economic cheerleading and bottom calls based on dubious (at best) earnings reports from banks
http://www.freerepublic.com/focus/f-bloggers/2236105/posts
No, it could be because you have an ARM or lost your job, etc. You are discussing a specific case and I am discussing reasons why there are forclosures. Included is the factor of having a mortgage that is much larger than the value of the house because of a major drop in the value of the house. It is easier to walk away than sell at a big loss.
The 'Commercial Real Estate Time Bomb' has started but the worst aspects are right around the corner. Small plazas/strip malls are being hit very hard, and malls which were not that popular are in rough condition. All the small stores and large which are closing also means unemployment continues climbing along with credit defaults and on & on.
President Telepromtor tells us everything is under control, yes, that's the problem, everything financial is indeed being controlled by the wrong people.
You have two sources of risk with longer-term corporate bonds: (a) inflation would not only erode the principal, but also cause yields to rise which degrades the market value of the bonds, (b) further deflation is still more than possible, and that could lead to default by the corporate borrower.
Secure your savings, buy gold , silver and foreign preferred shares in Canadian Banks.Royal Bank and Toronto Dominion are the best, available on the NYSX through any good US broker.
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Bank preferred share queries:
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