CRE Doom Loop: Rate Cuts Can’t Fill Office Buildings
With the expectation of an interest rate cut soon, commercial real estate stocks are up. But while lower interest rates might kick the can down the road, they can’t fill empty office buildings — so they won’t end the post-COVID CRE doom loop that could trigger a banking meltdown.
All that has happened is that market manipulation expectations are driving real estate stock prices up, but without the underlying support — i.e., actual renters in commercial buildings, so that owners pay back their loans to overexposed banks. With empty buildings not collecting revenue, no hope of filling them, and trillions in loans due to mature soon, the CRE market is a ticking time bomb.
REIT Index, 5-Day Chart
A report from real estate giant CoStar noted that in New York City, the office market value is back to the same levels as before COVID, even with a record-high number of vacant commercial buildings. And buried in the report is a criticism of the Department of Finance’s finding that CRE’s market value is up:
Some industry professionals said at the time the department’s market value data, which affects how buildings are assessed and taxed, may have used building owners’ outdated income and expense reports.”
If the value of these buildings is based on outdated data from owners who want to make their real estate portfolio look more valuable than it really is, how bad is the problem? We’re not really allowed to know the answer. In their 10-K filings, publicly-listed banks only have to list the historical value of their collateralized loans rather than the current market value. As explained by Shivaram Rajgopal in Forbes:
“Meaning, we do not know how much of these loans are likely to be recoverable once the potential deterioration in the value of the collateral is considered.”
For banks with high exposure to commercial real estate, lower interest rates might buy them time, but that’s only shoving the proverbial beach ball further down beneath the water. Once it slips from their grasp, it will burst from the surface with even more force, and cause a bigger implosion than if the band-aid were ripped off now.
But that’s impossible, because there is no free market. If interest rates were being set by market forces instead of a small group of appointed representatives for a banking cartel, interest rates would remain much higher for much longer — and overexposed, overleveraged banks with commercial real estate loans would be allowed to fail.
The Fed is determined to cut as soon as possible, citing cooling inflation. But in reality, inflation is still hot, but the Fed has no choice but to cut rates to prevent these commercial real estate lenders from going bust.
Besides, the real inflation numbers are much higher than what gets reported officially, giving the Fed a manufactured justification for rate cuts regardless of the economic reality. As Peter Schiff said on his recent Peter Schiff Show podcast episode:
“You always take the CPI with a grain of salt. In fact, if you want to get a more accurate measure, just as a rule of thumb, double whatever number the government reports, and that’s probably a lot closer to the actual number.”
And it isn’t just commercial real estate — the housing market is in trouble as well. Government intervention and inflation is making home ownership, and the costs associated with insuring and maintaining houses once they’re bought, totally unaffordable for Americans. While politicians like Elizabeth Warren blame the problem on a “housing shortage” and on the Fed for interest rates being “too high,” making borrowing unaffordable, this is exactly the kind of intervention that fuels inflation, market bubbles, and devastating busts to begin with.
Peter explains the real core of the issue:
“The real reason that housing is unaffordable now is because of the government…it’s the government that has driven up the cost of housing…so if there’s a scarcity of houses, it’s because the government has done something to prevent the free market from solving that problem.”
The government can’t stuff renters into office buildings without any occupants. But the Fed can lower interest rates, desperate to prop up a doomed market, and send inflation spiraling further out of control. They’re damned if they do and damned if they don’t — but they work within an academic ivory tower, isolated from the devastation they cause to average struggling Americans.
Alex Jones Issues Emergency Warning: If Not Stopped, The Globalists Will Collapse Civilization And Create Hell On Earth
Illegal Alien Stabbed Outside Notorious NYC ‘Migrant Shelter’
A male ‘migrant’ was knifed in broad daylight outside a dangerous shelter for illegal aliens in New York City this week, according to reports.
The incident unfolded at around 10:30 a.m. on Sunday in Manhattan.
A “violent clash” broke out near a tent encampment set up outside the infamous facility on Randall’s Island, law enforcement sources told the New York Post.
“The victim — who sources identified as a migrant — was taken to Harlem Hospital, where he was listed in stable condition.”
The Randall’s Island facility has been the scene of perpetual mayhem since it was opened in August of 2023.
On Thursday, a man was killed when a motorcycle he was riding slammed into a wall in a parking lot near the shelter.
In late July, a female ‘migrant’ was killed when a gunman on a moped opened fire upon a group celebrating Venezuela’s elections outside the facility.
In June, four people were arrested in connection with a stabbing and ensuing fight between Africans and South Americans at the shelter.
In January, an illegal alien was arrested for stabbing a 24-year-old man to death during a dispute over a woman there.
InfoWars has been documenting mounting chaos in New York City caused by a flood of illegal aliens who have been arriving en masse since early 2022.
Tim Walz Caught in New Acts of Stolen Valor
Watch: CNN Panel Suffers Unhinged Meltdown After Rep. Nancy Mace Mispronounces ‘Kamala’
A CNN panel devolved into a shouting match after guests were triggered over Rep. Nancy Mace’s (R-S.C.) pronunciation of Kamala Harris’ name.
The meltdown unfolded Thursday as Rep. Mace pronounced Harris’ first name two different ways, prompting CNN Newsnight panelists to accuse her of racism, before she declared she would say Kamala “any way that I want to.”
“You had it right, you almost got it,” former Clinton White House aide Keith Boykin told her.
“I will say Kamala’s name any way that I want to,” Mace defiantly insisted.
The most unhinged, sexist, left-winged radicals hyperfixated about how I pronounce Kamala’s name last night.
Meanwhile, Kamala’s still hiding from the media.
Embarrassing. pic.twitter.com/mWBxLFVCkJ— Rep. Nancy Mace (@RepNancyMace) August 16, 2024
“No,” shouted CNN commentator Michael Eric Dyson. “But you mispronounced her, and you also misjudged her.”
“I just did and I’ll do it again,” Mace said.
Boykin proceeded to claim it wouldn’t be appropriate if he said Mace’s name incorrectly, while Dyson argued she was “normalizing” a “disrespect” of Harris.
“It’s Kamala, you’re doing this on purpose, congresswoman,” Boykin told her, with Dyson adding she was committing a cardinal sin as “a white woman disrespecting a Black woman.”
The discussion came as former President Donald Trump has previously said he doesn’t care if he mispronounces Harris’ name.
“By the way, there are numerous ways of saying her name, they were explaining to me, ‘you can say Kamala, you can say Kamala’, I said, ‘don’t worry about it. It doesn’t matter what I say. I couldn’t care less if I mispronounce it’,” Trump said at a rally last month. “Some people think I mispronounce it on purpose, but actually, I’ve heard it said about seven different ways.”
MSNBC has previously claimed the mispronunciation of Harris’ name was part of a coordinated “hate campaign” on the part of Republicans.
Mika Says Mispronouncing Kamala Harris’ Name Is Part of a Right-Wing ‘Hate Campaign’ pic.twitter.com/vn4RypubPA
— Chief Nerd (@TheChiefNerd) July 22, 2024
Social media users have pointed out Joe Biden also mispronounces Harris’ name.
Three years after announcing Kamala Harris as his running mate, Biden is still pronouncing her name wrong pic.twitter.com/yS8eBvNY8j
— RNC Research (@RNCResearch) June 23, 2023
Joe Biden just mispronounced Kamala Harris’ name a couple minutes ago https://t.co/pUBYVJMePD
— Peter J. Hasson (@peterjhasson) August 12, 2020
Watch a longer clip of the fiasco below:
CNN had a meltdown accusing Nancy Mace of being a racist white supremacist because she didn’t pronounce Kamala’s name right. pic.twitter.com/2JQPSwakjL
— Libs of TikTok (@libsoftiktok) August 16, 2024
Kamala & Walz Push Bizarre Racial Food Stereotypes, Lie About Cooking & Gardening
Democrat presidential selectee Kamala Harris and her running mate Tim Walz released a brief video of them conversating about food.
The awkward staged talk began with Walz explaining he makes “white guy tacos.”
“What does that mean, like mayonnaise and tuna?” Kamala asked.
Listen, I’m just not much of a spice guy. pic.twitter.com/u9yadJBMh2
— Tim Walz (@Tim_Walz) August 15, 2024
Imagine if Trump asked whether black person tacos contained fried chicken and watermelon.
Walz said his “white guy tacos” are made from ground beef and cheese and that he doesn’t put any “flavor in it.”
The line is a play on the stereotype that most white people allegedly don’t season or under-season their food.
Walz next told Harris black pepper is “the top of the spice level in Minnesota.”
The weird claim is false as Walz himself once won an award for his “Turkey Taco Tot Hotdish” that includes “mild green chilis,” a whole bottle of “medium taco sauce,” and “chili powder.”
Tim Walz’s Turkey Taco Hotdish recipe.
— Dustin Grage (@GrageDustin) August 16, 2024
Yes, he’s even lying about spices. https://t.co/tbnzZMtbsn pic.twitter.com/mU2545CE3K
Harris then chimed in, saying, “I’m the first vice president, I believe, who has ever grown chili peppers.”
This remark shows Kamala is a completely uneducated as many former vice presidents have been on the record as avid gardeners.
In fact, if she knew the history behind the White House where she serves, Harris would know the first vice president in U.S. history, John Adams, started the first White House Garden where they grew their own fresh fruits and vegetables instead of purchasing them.
America’s second vice president, Thomas Jefferson, also kept up with the White House Garden and “personally planted seedlings such as fruit trees, herbs and vegetables to support his household,” and specifically “peppers,” according to the Washington Post.
The Harris and Walz campaign is as phony as a three-dollar bill.
Shock Video: Mob of Teens Brutally Beat ‘Asylum Seeker,’ Destroy His Car in California
An ‘asylum seeker’ from Kyrgyzstan received a rude welcome to the U.S. when his car was destroyed and leg broken by dozens of violent teens in California, according to reports.
The shocking incident unfolded in Los Angeles on the evening of August 2, but details and footage just surfaced this week.
Shailoobek Bazarbai was driving through downtown L.A. when a group of 30 to 50 youths on bicycles stormed the area, KABC reports.
When a bottle struck Bazarbai’s car, he says he got out to inspect the damage and was quickly swarmed by the horde.
Footage of the ensuing barbarity shot by multiple witnesses has been circulating on social media.
Mob of 40 felonious teens on bikes beat, rob, and destroy the car of a man making the mistake of driving down a city street in Gavin Newsom’s lawless California.
— Kevin Dalton (@TheKevinDalton) August 12, 2024
He was left with zero possessions and a broken leg.
I hope you are sitting down. Despite clear video of everyone… pic.twitter.com/7w2FRh9vPX
Young suspects can be seen smashing and stomping on Bazarbai’s vehicle, stealing his possessions, and assaulting him.
Eventually, a good Samaritan intervened and managed to guide Bazarbai to safety — but not before his leg was broken and his wallet and passport stolen.
“They destroyed my car, totally,” he told KABC. “It was like a brand new car I bought six months ago. They were jumping on my car. They were jumping on the roof of my car. They were insane.”
Bazarbai says he has been living in Los Angeles for a year as an ‘asylum seeker.’
No arrests had been made 10 days after the brutal crime, and it is unclear if authorities are investigating or trying to identify suspects.
InfoWars has been documenting the surge of crime across the United States, including carjackings, ‘street takeovers,’ smash-and-grab loot mobs, home invasions, and physical attacks on innocent victims.
Tim Walz Caught in New Acts of Stolen Valor
First Case Of Deadly Monkeypox Virus Outside Africa Reported In Sweden
Health authorities in Sweden have reported the first case of what they say is a more dangerous strain of the monkeypox virus outside Africa. Olivia Wigzell, acting head of the Swedish public health agency, told […]
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