Post by
bows333 on Mar 18, 2024 9:53am
US Commercial Real Estate
Multiple articles out recently indicating that US $1 trillion in CRE loans maturing this year. Recent sales seem to be in the 75% less than 7 years ago range. CRE buildings emptied out during COVID and haven't refilled. Lots of people avoiding cities now due to social issues there. The banks, in the early stages of the coming crisis (fall?) are looking at $750 billion in writedowns. The FDIC has about $125 billion in cash for the depositors. Federal Reserve capital (this isn't easy to find, but it is on the Fed's website) is about $5 billion (not a typo). Oil, and inflation, heading up this summer with a looming real estate crisis in the distance, and not enough money to cover the losses. It appears that the Fed will have no option but to lower rates and start more QE in the middle of a financial crisis while inflation is high and increasing. How the heck will that play out? Place your money, wait and see.