By John Galt
August 15, 2009
This is from Reuters (1st paragraph):
Fri Aug 14, 2009 2:15pm EDT
NEW YORK, Aug 14 (Reuters) – U.S. commercial real estate market values fell by more than 17 percent in the first half of the year, outstripping their decline for all of 2008, according to the Investment Property Databank (IPD).
Last year, values fell 12.2 percent, according to the report released on Friday.
U.S. commercial real estate values in the first half of 2009 fell more steeply than UK values, said IPD, which analyzes commercial real estate data in global major markets.
Basically this means the CMBS is being marked down that severely if not more so. Gang this is going to take capital ratios into the crapper so buckle up. The mega problems I and many others have been warning about are all about to hit:
1. Commercial Real Estate
2. CDS/CDO valuations and settlements
3. FASB revisions and actual valuations of real estate and loan portfolios
When this is recognized by the equity duffassmorons it will be too late. So watch the Cramericadummies and Kudzulosers pile into stocks thinking “wow, the economy is going to grow so much every illegal Haitian will get a free hybrid Escalade in Dade County” and that is when you will know the new top is in. Disaster is upon us gang, as warned, as predicted preached and warned about. Buckle up as the ride is about to get beyond last fall’s roller coaster E Ticket extravaganza.