House Defeats Bailout

The House of Representatives voted 228 to 205 against the bailout this afternoon. It will likely go back to get reworked but for the time being it is going to translate into market peril worldwide. The Dow is already down about 5%, and the slide will likely continue across the globe.

A bailout of sorts will likely be reached, but what is clear is that the public will want to get something for its money before it supports the bill, and it involves investigations, indictments, and prison cells.

All is not lost however, it seems the silver lining in all of this is that the Wall Street bankers managed a way to borrow trillions of dollars over the past few years from foreigners, and now much of that will not have to be paid back as this is essentially a repatriation, or credit against the deficit dollars of the past several years.

Life will go on, but for the foreseeable future, the impact on commercial real estate is obvious: rents will be pressured, lending will be tight, prices will continue to drop, and yields will increase.

Similar Posts:

• Now Commercial Real Estate Developers Want A Bailout
• The Bailout and The Big 3
• Bailout Proposal Nothing More than a Patriot Act II
• Can The Federal Reserve Deny Freedom of Information Requests (FOIA) Requests on the Basis of It Not Being a Government Entity?

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