Gradually, Then Suddenly

14 Replies to “Gradually, Then Suddenly”

1. Converting office buildings to condos for immigrants paid for by tax payers.

   1. Each office is a one bedroom apartment, and everyone can share a communal bath room.

      1. But how will they ever get the smell of curry out of the steel insulation?

2. “And there, in that dumb restaurant, with that stupid look on his face, Mark Baum realized that the whole global economy might come crashing down.”

3. It ends with a giant fuc$ing check from Uncle Sam.

   1. Oh, no doubt it gets there. I suspect it doesn’t end there.

4. if memory serves, at 8% delinguency the securities (the MBS stands for mortgage backed security) in case anyone forgot is when the turd hits the fan.

5. It never ends.
   Not til the O.P.M runs out
   last time?
   “Too Big to fail”.
   where ,defying reality , the government socialized the risk ,while privatizing the rewards..
   “Mortgage backed securities” which turned out to have no security nor backing..
   Zero interest rates can cover a whole lot of corruption.

6. Ooh! I actually know a lot about this. Old news. Office vacancy has been at record highs since 2020 but landlords thought everyone would return to office after Covid. AAA class buildings are doing pretty good, but B-class and lower will never be occupied again. Lots of stories in the industry about buildings selling for $100M in 2019 and selling now for $25M. Serious drops in price. It’s going to get worse due to a few things:
   1. as 5-year leases come up for renewal (this year), tenants are downsizing to better quality buildings with cheaper rent. Minimum 20% less space but commonly 50% less space than before.
   2. As commercial mortgages renew, there’s a problem: the original mortgage at 4% was based on 6% vacancy and cash flow from rent would cover it and provide an ROI. Now the buildings have 20% – 30% vacancy and the new lease rates are 60%-80% of what they used to be. Rent won’t cover the new mortgage at 10%, let alone provide an ROI to the landlord.
   San Fran is getting hit really hard because of their idiotic government. Businesses are moving out, no one wants to commute downtown and get stabbed. Vacancy pre-Covid was around 6% and is around 25% now. They won’t recover.

   1. The covid fraud working as it was intended.

7. And coincidentally this just got posted to the Xitter:
   https://x.com/TripleNetInvest/status/1787655639092908430

8. 15 minute cities

   1. Some of them might not last that long.