Those of us in the real estate industry have been aware that the problems facing it aren’t just confined to residential markets. According to a story on Globest, Congress is finally waking up to the fact that the commercial industry is in trouble as well. Federal Deposit Insurance Corp president Sheila Blair acknowledged as much on a recent television interview.
The real question is will the government act swiftly enough. Outrage over the mishandling of tarp funds put a damper on the Fed’s will to act for a moment. However, recent successes like the Cash for Clunkers program may motivate the Fed to step in sooner. The other looming question is how do they intend to pay for a bailout if one occurs.
New Jersey Senator Robert Menendez sent a letter Fed chairman Ben Bernake and Secretary of the Treasure Timothy Geithner requesting that they take forceful measures to address the declining commercial market. Considering the huge amount of loans coming due in 2012 for property worth a fraction of the debt, I don’t see how they can’t take immediate action of some sor.
Tune into channel 165 on XM radio. Glenn Beck will explain the mess a big better. Glenn’s word is not law, however makes clear sense, if you believe in capitalism.
When values of property is on the decline it’s only inevitable that owners of commericial properties were going to have a very difficult time refinacing their notes. From the number i’ve heard there is close to 500 billion worth of notes that are going to expiring on January 1.
It’s scary to see how much more government takeover will occur. Never put a crisis to waste!
It is good that the government does care. But they have to care about everybody and not just pick and choose. That is why it is just best for them to stay out of it.