Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (25355)	1/29/2002 6:54:28 PM
From: jjstingray	Read Replies (1) \| Respond to of 99280

Slowly but surely the real estate bubble will begin to crack. This is just the beginning of the bubble bursting in real estate.

To: mishedlo who wrote (25355)	1/29/2002 7:04:59 PM
From: ajtj99	Respond to of 99280

Wow, Mish. That is one wicked, nasty candle there.

To: mishedlo who wrote (25355)	1/29/2002 8:03:32 PM
From: Jdaasoc	Respond to of 99280

Banks got wacked today and that's just the start of the decline if trouble is brewing. I live in NJ and my exit off interstate is near the 200,000 sq ft recently announced FOR SALE AT&T world headquarters. 3 office buildings, 2 hotels and a strip mall went up during the construction boom years of the last two years not knowing that T and LU would be letting go so much leased space and closing so many offices in the area. Your post about BA tightening credit is just the start. I can tell you most of the financing provided for these projects on my one little exit ramp were from small regional banks from the South and West of US. Their computer mapping programs indicated that the area had a high per captida net worth two years ago. It seems that a lot of the assets were in stocks.<g> I think that the percentage of the economy that is sensitive to asset devaluation has been far underestimated. S&P 1100 is not that much of a decline from the bubble peak. Vacancy rates of 30% in Northern NJ Class A commerical real estate is looking more and more like it is setting a mini S&L loan portfolio crisis from the 80's for banks and REIT's. It is getting harder and harder driving by most highways and not realizing there is trouble brewing in economy that is going to be hard to work out quickly. I am firm believer that one doesn't have too look very hard at day to day economy to realize problems are out there.