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Billionaire investor Wilbur L. Ross Jr., said today the U.S. is in the beginning of a “huge crash in commercial real estate.”

“All of the components of real estate value are going in the wrong direction simultaneously,” said Ross, one of nine money managers participating in a government program to remove toxic assets from bank balance sheets. “Occupancy rates are going down. Rent rates are going down and the capitalization rate -- the return that investors are demanding to buy a property -- are going up.”

U.S. commercial property sales are forecast to fall to the lowest in almost two decades as the industry endures its worst slump since the savings and loan crisis of the early 1990s, according to property research firm Real Capital Analytics Inc. The Moody’s/REAL Commercial Property Price Indices already have fallen almost 41 percent since October 2007, Moody’s Investors Service said Oct. 19.

Billionaire George Soros, speaking today at a lecture organized by the Central European University in Budapest, said a “bloodletting” may be coming for leveraged buyouts and commercial real estate.

“The American consumer will no longer be able to serve as the motor for the world economy,” said Soros, 79.
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There is one comment from Anonymous said...(http://thecomingdepression.blogspot.com)

Watch and wait now. As I stated before after the Christmas massacre and the subsequent collapse of the Commercial real estate expect a MASSIVE bear market.

This WILL be the last opportunity to buy precious metals.

Also, Bob Chapman of international forecaster has stated that come next year the FED is going to try to keep this thing going by forcing banks to lend again. In other words another bubble. However, this time around it is going to be direct monetization where the FED gives the money to the banks and the banks HAVE to lend regardless.

This nuclear option will force liquidity into the end users hands (U.S. people) so we can BUY BUY BUY.

Since our economy is 70% Consumption this will be the feds last ditch effort.

However, the consequences are going to be ruiness with rampant inflation happening immediately from direct liquidity injection via the FED - Banks - Consumer.

Right now the banks are hording the cash and not lending. This will change next year once the mandate will be given to force lending institutions to give out loans. Think sub-prime 2.0 if you will.

This time around it will not work and will not create another 6-8 year bubble because the fundamentals are different this time. At best it will create the “illusion” of a couple quarters of GDP growth and Stock market increases. For example, look at the second quarter GDP results of a 3.5% increase. We all know that this was ONLY due to direct liquidity injections for cash for clunkers and the $8000 House credit. However, what is coming next is the examples above but on steroids.

So with that being said wait until early 2010 after the next crash to buy Silver on the cheap. Because after the next crash the above scenario will unfold and a Hyper-inflationary depression will ensue.

However, this will effectively impoverish the entire populace with inflation and after the next crash from this last lending scheme the Powers that Be will be able to devour all asset classes from the sheeple.

November 1, 2009 12:45 PM

that I like to share with.