The Real Estate Market Is ON THE BRINK
(00:00.622)
they got a plan. Yep. Yep. There is a game plan for the commercial real estate collapse. This is what I see happening. Well, first and foremost, let’s let’s go to the scoreboard, shall we? The delinquency rate for commercial mortgage backed securities that are tied to office properties reached 10.4 % in November.
Okay, the peak, the all time high was 10.7 % and that was during the 2008 financial crisis. This rise, this ascent is the fastest two year increase on record. It’s accelerating. It’s not getting better. It’s not getting better. It’s getting worse again.
We told you all of this was going to happen. Here are some of the things that they’re saying, okay, are factors, Malinvestment due to artificially low interest rates and excessive credit expansion, obvious. Zoning restrictions, hampering property, repurposing, that’s, yes, it’s most certainly a problem. Again, sometimes communities get nimby when it comes to converting some of these properties. But again, also sometimes a property
can’t be converted, it’s just too expensive and too difficult to do so. And of course, the fact that nobody wants to go back to the office. Okay, some of the things that we’ve thrown out there. anyway, what I see happening, all of this papers that are on the books, we’ve talked about it for some time, especially with a lot of these smaller to mid-size banks.
as well. Big banks have, you know, tons of this paper also. They’re holding out.
(02:07.864)
They’re holding out. The best thing for them, I’m telling you with how they’re thinking, they’re saying, listen, we got Donald Trump coming into office on January 20th. We start saying things are looking terrible. We start saying we’re gonna default. Bank is going to fail. Throw this on his lap in the first quarter of his presidency. he’s not gonna wanna deal with that. He’s not gonna wanna deal with the politics of bank failures.
And they’re basically gonna, they’re gonna call for bailouts.
(02:43.15)
That’s what I again. That’s what I see them doing. I See that they’re they’re they’re extending and pretending right now so they can drop this crisis at the desk of Donald Trump Assuming that Donald Trump said I can’t allow this to happen and my god the news stories people are gonna People are gonna banks are gonna fail and people are gonna lose the money in the banks and whoop bailout III certainly hope
I certainly hope that the president doesn’t do that. Let them fail. Let them fail. Failure is a good thing. yeah, it is. Failure teaches you. if there’s no, some consequences for bad actions or malinvestment or whatever it may be,
What’s to stop people from doing it again? Let the banks fail you got all this paper sucks to be you We’re done bailout nation needs to stop at some point in time again, this is what I see happening. Okay, I see this Happening probably within the first three to six months of Donald Trump’s presidency
Hmm, I don’t know what he’s gonna do. I don’t know what he’s do. I know what I’d like him to do. We shall see. Watchdogonwallstreet.com.
