Obama Has 10 Months
January 22, 2010
Lots of talk about Obama’s plans to regulate banks, limit their prop trading, etc. Well, the people have spoken in Massachusetts of all places, and he now has 10 months to make the big changes he promised the constituents. Otherwise the midterm elections will be ugly.
We might not get healthcare, but that doesn’t matter. People want to see the bleeding stop, not see headlines about banks making ten digit profits while unemployment and foreclosures remain at such heightened levels, and want to see some heads roll. Bernanke might not be reconfirmed. It is going to be wild and bumpy 10 months at least, and the market is likely going to be a crazy place to be.
If the market is hit with another wave of uncertainty, then any hopes of a recovery or meaningful change in the commercial real estate market will almost certainly not arrive until 2012. Perhaps not even a stabilization.
We’ll continue to read about companies leasing space and moving around, but the big news – expansion – will likely not show up except in pockets.
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Tags: Commercial Real Estate, Obama, Recovery
Another example of why the free market rules. Politicians pushed policy to allow low mortgage rates, fueling consumer spending and the allusion of economic prosperity. This policy did not work. Politicians pushed policy to save banks, creating an uneven playing field once again. Consumers were underwater, but had no negotiating power with lenders because lenders were living high on the hog with government(consumer money). If lenders would have been allowed to float in the free market we would have had balance and everyone would be at the table working to find a solution. Why are commercial real estate owners not scared, because they know banks are in as precarious a position as they are, and must come to the table to renegotiate troubled loans.
Why do liberals believe human creation was the product of evolution, but when it comes to the economy the hand of the politician would save everything. This is more then ironic, its plain stupid.