Posted on 12/30/2010 7:57:47 PM PST by FromLori
Can you please link this or should I repost it?
I talked to an acquaintance who’s into commercial real estate. In Salem Oregon, the vacancy rate is 30%!
Just look around wherever you live. There are more and more empty strip shopping centers. In Atlanta its getting really bad.
And are baffeled completely by the sudden, unbudgeted for drop in state revenues.
Hello, this is what happens when you raise taxes in a recession. People lose their businesses. They fire employees and no longer pay income tax for them. Instead the employee is on unemployment and sucking off the system.
They are actually baffeled by this because those they voted for told them it would INCREASE state revenues and the schools here. Oops. We TOLD them this would happen. We weren’t exagerating at what the effect would be. It’s gonna get uglier than that before the dawn comes again.
Thanks, Lori. CRE still hasn’t hit yet.
democrats are deindustrializing the u.s.
I had to go to NSWC Port Hueneme in October. I drove the Pacific Coast Highway to Port Hueneme from LAX. There are hundreds of vacant properties along the PCH. Everything from small restraunts to car dealerships were boarded up. In Malibu, there were numerous “for rent” signs on beach houses and condos. The PCH at one time had the most desirable commercial property in the world. I stopped at a Porsche shop that was located on the PCH just south of Malibu. The guy had been in this location for over 20 years. He was waiting for his lease to expiire, and move his business to his home 10 miles inland.
Our church alone adopted 53 families and at least 126 children for Christmas and provided the families with food for a week and presents for the kids.
I don’t think Californians want any business of any kind anywhere near the Pacific Coast Highway. I don’t think they want any kind of business anywhere in their state, for that matter.
No,the government is destroying the system not the employee who never even created the system nor had a say in it.In truth,the government has SUCKED the life out of America.
“Media Not Available”
Not sure that pointing to Retail proves anything, much less a bunch of weak and crappy retailers that probably deserve to fail.
I don’t disagree that the “recovery” is wishful thinking, but not because of this stuff.
Real estate appraisals were bogus since at least 2000. So the $2 trillion was always bogus.
So, if the $2 trillion never existed, it is not lost.
Too bad if a bunch of people spent like their house was truly appraised.
Since governments have been spending non-existent money for decades, we are just seeing a retreat to true value. Loans are being called.
What's the term? Mellonesque liquidation?
yitbos
My fear right now is that we’re on the verge of a perfect repeat of the 1930’s—deepening economic crisis that leads to political extremism with only one outcome: world war.
You are right about that.
Interesting assessment of the commercial real estate collapse which also brings in ONLINE SHOPPING as a contributing factor.
“CRE still hasn’t hit yet.”
It’s starting to hit it’s taking out a lot of smaller banks but the worse is yet to come the larger banks got more aid which is probably why it hasn’t shown up as much yet. I wonder how much taxpayers will end up losing on Tarp when it’s all said and done.
“Smaller TARP recipients are in worse shape than larger banks because the larger ones got help in addition to TARP, Mr. Cole said. Bank of America Corp. and Citigroup Inc. tapped the Federal Reserve’s emergency-liquidity programs frequently during the crisis.”
“Arthur Wilmarth, a George Washington University law professor and expert on banking regulation, said a lot of smaller TARP recipients are burdened with risky commercial-real-estate loans tied up in troubled strip malls and the like, and that makes it hard for them to raise new capital. “A lot of them are in kind of a frozen position,” he said.”
http://www.frumforum.com/smaller-bailed-out-banks-still-in-trouble
“Pro Publica has been maintaining a list of bailout recipients, updating the amount lent versus what was repaid.
So far, 938 Recipients have had $607,822,512,238 dollars committed to them, with $553,918,968,267 disbursed. Of that $554b disbursed, less than half — $220,782,546,084 — has been returned.
Whenever you hear pronunciations of how much money the TARP is making, check back and look at this list. It shows the TARP is deeply underwater.”
http://bailout.propublica.org/list
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