Comments on: Our World Has Rolled Over http://www.biggerpockets.com/renewsblog/2009/09/11/world-rolled/ Learn, Network, Invest Sat, 11 Feb 2012 01:23:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: jeffreyhttp://www.biggerpockets.com/renewsblog/2009/09/11/world-rolled/#comment-70136 jeffrey Sat, 12 Sep 2009 02:12:43 +0000 http://www.biggerpockets.com/renewsblog/?p=6963#comment-70136 FDIC will be out of funds by end of this quarter. they will get refilled by Feds. I suspect many if not most regional banks are going to be wiped out by the crash in commercial real estate lending (homebuilder loan defaults are probably through) that is coming as all of these 5 year bullets issued in 2004-2008 roll over in the next couple of years. Most building values are down 35% minimum and there is no equity so borrowers will default--see Maui Prince default with $225,000,000 in equity originally invested by Morgan Stanley and others).Politicians do not like to cut spending, nor raise a lot of taxes, so they are going to be printing a lot of money so they can fund all there programs. Stock market increases are going to be whacked by currency deflation (see insider selling going on last month or so) so real estate is probably the one hedge that the average person has to protect their purchasing power. The bottom may not be here, but it is close, an extension of the tax credit to at least first time buyers is going to happen and hopefully even extended to everyone to put a floor under the move up market.time to be quick and nimble, have enough reserves etc. FDIC will be out of funds by end of this quarter. they will get refilled by Feds. I suspect many if not most regional banks are going to be wiped out by the crash in commercial real estate lending (homebuilder loan defaults are probably through) that is coming as all of these 5 year bullets issued in 2004-2008 roll over in the next couple of years. Most building values are down 35% minimum and there is no equity so borrowers will default–see Maui Prince default with $225,000,000 in equity originally invested by Morgan Stanley and others).

Politicians do not like to cut spending, nor raise a lot of taxes, so they are going to be printing a lot of money so they can fund all there programs. Stock market increases are going to be whacked by currency deflation (see insider selling going on last month or so) so real estate is probably the one hedge that the average person has to protect their purchasing power. The bottom may not be here, but it is close, an extension of the tax credit to at least first time buyers is going to happen and hopefully even extended to everyone to put a floor under the move up market.

time to be quick and nimble, have enough reserves etc.

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