You have no idea how bad this could be. I work in the industry. There are massive losses out there just like the farm crisis of the 1980’s. Couple those losses along with the massive losses the banks have on their books in their bond portfolio’s and the liquidity crisis we are all dealing with right now thanks to Federal Reserve and the ever changing rules from the FDIC about liquidity there is going to be some massive failures of mid size banks that scares the financial market’s. There are fools in charge folks.
Highly paid, unaccountable fools who get paid no matter what. Like the 2007-2008 crisis, it is a moral hazard.
I believe it is ready to implode. As an attorney I was often court-appointed to sell such properties back in the early 1990s. I saw properties sell for $10K or less that erased mortgages of hundreds of thousands of dollars.....
Look at the news today about New York Community Bank massive set aside because it purchased parts of Signature Bank earlier in the year. You need to know that the FDIC guaranteed a bunch of Signature bank loans for the deal to go through. It’s how the FDIC does it today. So the write offs are on top of that so the real losses have to be huge. Couple those losses with the liquidity issues all banks are facing. I know of a regional bank that had to bite the bullet sold 1 billion in face amount of bonds for 860 million making the paper loss of 140 million a real loss because they ran out of liquidity and at the same time doubled their loan loss reserves. This will mushroom
At some point government simply takes everything to feed itself, like the cancer it is. When I was young it was a good investment to buy Vermont woodlots -- now the taxes exceed their productive capacity. The same is true with farming -- without tax relief, property taxes generally exceed the profits that can be earned on the land. It ends badly.....
The decline of retail started years ago as Jeff Bezos' Amazon fought to collect and pay sales taxes on items purchased. He obviously knew he would ultimately lose, but by the time the dust was settled, Amazon had become mainstream. And then you usher in the arbitrary lockdown madness where Target stayed open because they fortuitously added food to offerings while Bed, Bath & Beyond was closed. Somehow, officials couldn't figure out that this would result in the implosion of the value of commercial buildings, both for office work and retail, and we now have the "Blue City Blues." Trends Journal has been writing about the calamity coming for two or three years. Commercial buildings will be the 'hot' potato no one wants to hold when the music goes off. Dim-witted public officials, the same ones that did nothing to help retailers maintain a competitive ground with Amazon, now propose converting commercial properties to residential. From my understanding, the costs would be exorbitant to transform skyscrapers into residential. And who wants to live in a nondescript building? The Pruitt-Igoe experiment in St. Louis decades ago is evidence things don't go well.
This is funny: "converting commercial properties to residential." I contemplated writing the article with that "modest proposal" as a (satirical) proposed solution. When NY is ousting students from their school to house non-citizens, perhaps the asylum-seekers would welcome a nice former Target store to set up house in, maybe a rooftop garden..... It's not funny, yet some of the policies advanced by progressives are far more absurd.
They are absolutely serious. My local official, who is brilliant because of course she went to a top-notch university, is advocating for this. As if there is a magic wand that magically transforms a building sort of like Minecraft. Of course, lots of $$$ to private developers for these transformations that will surely end up like Pruitt-Igoe. I receive daily emails from all 'the grants' offered. None mention that the grants come from taxes taken from one group to be given to another. If you really want to suck the joy out of your day, you should get the weekly emails from the California AG's office.
You have no idea how bad this could be. I work in the industry. There are massive losses out there just like the farm crisis of the 1980’s. Couple those losses along with the massive losses the banks have on their books in their bond portfolio’s and the liquidity crisis we are all dealing with right now thanks to Federal Reserve and the ever changing rules from the FDIC about liquidity there is going to be some massive failures of mid size banks that scares the financial market’s. There are fools in charge folks.
Highly paid, unaccountable fools who get paid no matter what. Like the 2007-2008 crisis, it is a moral hazard.
I believe it is ready to implode. As an attorney I was often court-appointed to sell such properties back in the early 1990s. I saw properties sell for $10K or less that erased mortgages of hundreds of thousands of dollars.....
Look at the news today about New York Community Bank massive set aside because it purchased parts of Signature Bank earlier in the year. You need to know that the FDIC guaranteed a bunch of Signature bank loans for the deal to go through. It’s how the FDIC does it today. So the write offs are on top of that so the real losses have to be huge. Couple those losses with the liquidity issues all banks are facing. I know of a regional bank that had to bite the bullet sold 1 billion in face amount of bonds for 860 million making the paper loss of 140 million a real loss because they ran out of liquidity and at the same time doubled their loan loss reserves. This will mushroom
" If city taxes are raised sufficiently, property owners may simply bow out and let the government operate the buildings"
There it is. The government. Funded by the taxpayer.
If only the taxpaying populous was actually represented by self-aggrandizing governments.
At some point government simply takes everything to feed itself, like the cancer it is. When I was young it was a good investment to buy Vermont woodlots -- now the taxes exceed their productive capacity. The same is true with farming -- without tax relief, property taxes generally exceed the profits that can be earned on the land. It ends badly.....
The decline of retail started years ago as Jeff Bezos' Amazon fought to collect and pay sales taxes on items purchased. He obviously knew he would ultimately lose, but by the time the dust was settled, Amazon had become mainstream. And then you usher in the arbitrary lockdown madness where Target stayed open because they fortuitously added food to offerings while Bed, Bath & Beyond was closed. Somehow, officials couldn't figure out that this would result in the implosion of the value of commercial buildings, both for office work and retail, and we now have the "Blue City Blues." Trends Journal has been writing about the calamity coming for two or three years. Commercial buildings will be the 'hot' potato no one wants to hold when the music goes off. Dim-witted public officials, the same ones that did nothing to help retailers maintain a competitive ground with Amazon, now propose converting commercial properties to residential. From my understanding, the costs would be exorbitant to transform skyscrapers into residential. And who wants to live in a nondescript building? The Pruitt-Igoe experiment in St. Louis decades ago is evidence things don't go well.
This is funny: "converting commercial properties to residential." I contemplated writing the article with that "modest proposal" as a (satirical) proposed solution. When NY is ousting students from their school to house non-citizens, perhaps the asylum-seekers would welcome a nice former Target store to set up house in, maybe a rooftop garden..... It's not funny, yet some of the policies advanced by progressives are far more absurd.
They are absolutely serious. My local official, who is brilliant because of course she went to a top-notch university, is advocating for this. As if there is a magic wand that magically transforms a building sort of like Minecraft. Of course, lots of $$$ to private developers for these transformations that will surely end up like Pruitt-Igoe. I receive daily emails from all 'the grants' offered. None mention that the grants come from taxes taken from one group to be given to another. If you really want to suck the joy out of your day, you should get the weekly emails from the California AG's office.
IMO we can no longer call them progressives. Their ideology matches socialists, Marxist, and communists