View article at its original site
Showing comments 1—12 of 12
Posted 10/30/09 09:41 AM Ken from CT Milford, CT | Now, either he will be right or he will be wrong. If he is wrong I am sure these comments will end up being in the top ten of most viewed utube videos. If he is right, the only way they can stop it is by facilitating all the bad debt with additional bailouts or federal Reserve stimuli.
So, there are only two choices the way I see it and if his and Bernanke's history is any clue, you know what's ahead. |
Posted 10/30/09 10:07 AM sweetliberty San Rafael, CA | The crisis has already been sparked. This seems to be the results/playing out of the crisis. |
Posted 10/30/09 9:34 PM redshirt Philadelphia, PA | Geithner needs to go back to the Keebler tree -- maybe his cooking is better than his economic guidance.
Foreclosures are accelerating. 115 banks have now failed this year. How can the pressure of a floundering commercial real estate market not push the banking crisis further along? I think the entire savings and loan crisis cost something like $150 billion. I wonder what the tally will be for banks failing from 2007 and on? |
| Posted 10/30/09 10:09 PM C00kieM0nster Oxnard, CA | Bwahahahhaha!! Eerily similar to "X is well capitalized" Replace X with GSE or favored financial institution (i.e. Fanron, Lehman, Merril Lynch, etc.)
The vast majority of CRE loans are designed to never fully amortize. Kinda like I/O's and Option ARMs. A 5-10 yr. loans in which principle is rolled over to a new loan at the end of term. CRE also include Multifamily Residential with as few as 5 units (apartments anyone?). With rents starting to drop, and vacancies on the rise, this is going to get ugly. |
| Posted 10/31/09 06:29 AM Ken from CT Milford, CT | Next day, this news came out
Wilbur Ross Sees a Huge Commercial Real Estate Crash http://www.bloomberg.com/apps/news?pid=20601087&sid=amPXzjQV3nGQ |
Posted 10/31/09 07:58 AM MichaelBarry Sebring, FL | The reported 3.5% growth in the 3rd quarter is a hoax. It is done with a lot of smoke, mirrors, government takeovers and bailouts. Cash for clunkers, first time home buyer credits, and other government spending accounts for 100% of the 'growth.' The apparent stabilization in home values may be entirely attributed to more housing subsidies just as the continuation of GM and Chrysler may be entirely attributed to auto subsidies.
Unemployment continues to rise as we are now two years into the current depression. New unemployment claims are still well in excess of 2 million per month. Over the past two years residential values have fallen about 60%. The dollar during this period has fallen about 25%. So the net real loss in residential real estate is about 70%. There is still a lot more room on the downside as it is not realistic to presume that government subsidies will continue indefinitely. Moreover, the continuation of trillion dollar subsidies of the private sector will in the end merely decrease the value of the dollar further. The unemployed, bankrupt, and homeless consumer is not going to lead the way out of depression. The subsidized US auto industry is not going to lead the way out of depression. The Banks wallowing in TARP money and Treasuries are not going to lead the way out of depression. The idea that in this atmosphere commercial real estate is going to be exempt from the general catastrophe is fatuous. The simple fact is the only persons so far largely protected from these circumstances are public employees,and the sources of real revenue supporting them have evaporated. The United States is now entering its new status as a third world country, distinguished by the privileged employees, minions, henchmen and enforcers of government standing with a boot on the face of humanity forever. |
Posted 10/31/09 10:13 AM jwfox1965 Las Vegas, NV | "Geithner Says Commercial Real Estate Woes Won’t Spark Crisis"
....And what sort of a history denying idiot would you have to be to believe this? |
Posted 10/31/09 1:19 PM BruceLayne Lexington, KY | Geithner is getting a reputation for the accuracy of his predictions. In every case, he says the government is doing the right stuff and things are getting better, and in every case the exact opposite is true. The government's BandAid fix is temporary, the underlying problem worsens, leading to the next big crisis.
If Geithner says we can expect a beautiful sunny day, you'd better grab your umbrella... and probably your hip waders. |
| Posted 10/31/09 6:35 PM Scott from PA Hopwood, PA | ...but it will require another huge bank bailout by the Federal Reserve. |
| Posted 10/31/09 8:05 PM C00kieM0nster Oxnard, CA | Meatime, the FDIC is encouraging >100% LTV for CRE Loans.
In what world could this ever possibly work out? |
| Posted 11/01/09 03:06 AM Paul S. Brighton, MI | Why does the Treasury Secretary sound more like a confidence man (con-man) than an accountant. Sound money will prove its own value in a free market.
Bankers Discuss Cause of Flurry (NYT 1907) http://query.nytimes.com/mem/archive-free/pdf?_r=1&res=9D04EED6103EE0 33A25750C0A9649D946697D6CF Here is an 1907 article covering a conference. Did a central bank solve their problems? |
| Posted 11/01/09 9:17 PM Cliff Hutchison Portland, OR | I like how they add the personal empathy touch, for everybody who is clueless about financial stuff: "...reports of his 100-hour work weeks don’t do justice to his new routine. “There is no typical day and it’s so much worse than you think,” Geithner said."
It reminds me of the rhetorical question that Kucinich put to Kashvari: "I know that you're working hard... but the question is... who are you working for?" |
You must be a member to post comments. [Become a member]
