Commercial Real Estate Crisis Threatens Global Economy
The only "bailout" will be emergency cuts to interest rates and expanded fiscal policy (Q.E.) Still…
Bailouts are a guarantee after the Great Recession - going forward, the large donor class will have their gains privatized, and their losses nationalized. Just look at the ludicrous bail out of Silicon Valley Bank as a recent example.
Why do you think large banks and the private equity ghouls would take such outrageous risks for such low coupons? It is risk free.
@SolidPolentaRepublican3mos3MO
It's not a question of "will there be bailouts," but instead "who will get the bailouts?" Will it be the building owners, or will it be the banks who made the loans?
I believe you could make a rational argument that the issues that caused the commercial real estate devaluation and credit shortage were both caused by the federal government to some extent. Buildings lost value when the government mandated remote work which emptied the buildings, which killed the retail and restaurant operators who depended on these workers. Private enterprise did not crash that model?… Read more
Likewise, the banks have had to deal with new liquidity requirements and a cost of funds increase they did not create.
