The Worst May Still Be Yet To Come For US Banks’ Commercial Real Estate Loans – The fallout from Commercial Real Estate exposures for banks has yet to run its course, in Standard & Poor’s opinion. – Research Recap
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Sales of million-dollar-plus homes way down – Carolyn Said – … Grubb said he sees a different type of buyer. "In 2005, it was Wall Street people buying these homes; now it’s local entrepreneurs, people who’ve quietly worked hard forever and ever to build up their own business," he said. "They’re local, they know the market, they’ve watched these homes for years so they can sense good values. They’re move-up buyers." … – SF Chronicle
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US CMBS delinquency rate hits 6%, and is headed higher – The delinquent status of the Extended Stay America loan was a large contributor to a 129 basis-point increase in overall U.S. CMBS delinquencies last month to 6%, according to Fitch Ratings. – Research Recap
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Why We Keep Getting Poorer: High-Cost Housing – Charles Hugh Smith – The reason why we’re poorer: more of our income goes to housing than it did 35 years ago. Simply put: housing costs have far outpaced household incomes over the past 35 years, making the high cost of housing the primary driver of declining discretionary income: what’s left after paying taxes and housing. – Of Two Minds
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How Larry Kotlikoff Would Fix the Financial System – By Peter Coy – The Boston University economist wants to take all the risk out of banking, hedge funds, and insurance companies. Some people are listening - BusinessWeek