July 2009

warning: Cannot modify header information - headers already sent by (output started at /usr/home/hutchins/drupal/drupal-6.24/includes/database.mysqli.inc:134) in /usr/home/hutchins/drupal/drupal-6.24/includes/common.inc on line 153.

GE says GE Capital improving, bad loans to linger

Submitted by jbonica on Wed, 07/29/2009 - 13:56

Bubblenomics

By STEPHEN MANNING

General Electric Co. said Tuesday its GE Capital finance arm is on track to be profitable this year and won't need outside funding, but that its higher level of losses on loans gone bad will likely continue into 2010.

The Fairfield, Conn.-based industrial conglomerate also said during an analyst conference call that elements of an Obama administration financial sector reform proposal -- which could force GE to split off GE Capital -- appear to be losing steam in Congress.

Commercial real estate new Achilles heel for banks: Yellen

Submitted by jbonica on Wed, 07/29/2009 - 13:52

Bubblenomics

By Greg Robb, MarketWatch

WASHINGTON (MarketWatch) -- Commercial real estate is the new Achilles heel for the U.S. banking sector, said Janet Yellen, the president of the San Francisco Federal Reserve Bank on Tuesday.

"The next area of significant vulnerability for the banking system, particularly for community and regional banks with real estate concentrations, is income-producing office, warehouse and retail commercial property," Yellen told a bankers conference in Idaho.

"Our biggest concern now is with maturing loans on depreciated commercial properties," Yellen said.

Tampa Bay commercial real estate: The coming storm?

Submitted by jbonica on Wed, 07/29/2009 - 13:48

Bubblenomics

by James Thorner

A commercial real estate report put out by First American CoreLogic flags two areas of concern for the Tampa Bay area.

We're among the national leaders in commercial mortgages that came due in June. That means property owners will have to refinance, sell or pay off their loans, no easy matter in this lousy real estate market.

Tampa Bay had $132 million worth of office building mortgages that matured in June. The maturing debt on local industrial property was even higher, $204 million. (Please note page 2 of the report I link above.).

Expert: Commercial real estate prices haven't reached bottom

Submitted by jbonica on Wed, 07/29/2009 - 13:43

Bubblenomics

DENVER - According to a local commercial real estate expert, the market could be set for a rebound, but not for at least another year or two.

"People who have money will come out of this very, very well," Leo Wells, chairman of Wells Real Estate, said.

Wells says there are some good values out there right now in commercial real estate, but not as good as he thinks they'll be in 2010 and 2011, after the banking industry gets back on its feet.

"Actually Denver's probably doing a bit better than some of the other commercial markets around the United States," Wells said.

Banks brace for commercial real estate losses

Submitted by jbonica on Wed, 07/29/2009 - 12:36

Bubblenomics

Second-quarter bank results are showing exposure to commercial real estate, where prices have continued to decline as the recession continues. Recent filings show several banks' nonperforming commercial loan rates have tripled in the past year. "Commercial real estate in the United States of America is going to get worse consistently over the next several quarters," said Jamie Dimon, CEO of JPMorgan Chase.

Visit Banks brace for commercial real estate losses

Banks Kick Commercial Real Estate Loans Down Road

Submitted by jbonica on Tue, 07/28/2009 - 12:17

Bubblenomics

One of our big calls in late 2007/early 2008 was the disaster that was to be happen in commercial real estate. Many REITs since then have imploded 80-90%+ before rebounding to some degree as we rejoice over the solutions of flooding paper dollars in every direction, and into every orifice; or PPP as we like to call it. [May 19: Paper Printing Prosperity Defined] It's strange how the issues in commercial real estate - while still somewhat pressing for smaller regional banks - have been tossed out the window as if they are not material or won't matter.

Profit from commercial real estate's fall

Submitted by jbonica on Tue, 07/28/2009 - 12:13

Bubblenomics

Some REITs and ETFs are better positioned to take advantage of the downturn.

By Katie Benner

NEW YORK (Fortune) -- Trouble is brewing in the commercial real estate market, with everyone from building owners to Ben Bernanke wondering if we're in for "Real Estate Nightmare, Part 2."

Widening Commercial Real Estate Crisis Hits U.S. Banks

Submitted by jbonica on Tue, 07/28/2009 - 12:00

Bubblenomics

NEW YORK -(Dow Jones)- When commercial real estate markets went bust two decades ago, bankers said they learned a hard lesson.

The latest earnings reports from U.S. banks suggest many, in fact, didn't.

Losses from loans tied to strip malls, office buildings, housing complexes, and the like are hurtling toward record levels not seen since the infamous savings-and-loan crisis.

Commercial Real Estate Mortgage Crisis

Submitted by jbonica on Tue, 07/28/2009 - 11:57

Bubblenomics

As the unprecedented economic deterioration continues with the higher than expected 554,000 job loss reports, beware of the resulting epic drop in commercial real estate values that could result in over $1 trillion in upcoming headaches for financial institutions, investors and the administration.

Commercial Real Estate Report Recession creates feeling of emptiness

Submitted by jbonica on Mon, 07/27/2009 - 14:45

Bubblenomics

Vacancies escalate as stubborn economy saps consumer spending, available financing

BY CAMI JONER

On top of the recent lumps taken by area home sellers, Clark County's commercial real estate market is beginning to feel the pain of recession.

The evidence is growing as "space for lease" posters around the county signal increasing office, retail and industrial vacancies. And similar to the decline of the once-robust housing market, rising commercial vacancies push down property values and put building owners in danger of mortgage delinquency.

User login