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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Vosilla who wrote (90229)1/7/2008 2:08:03 PM
From: Perspective  Respond to of 110194
 
<'Analysts, bankers and developers are not predicting the imminent collapse of the commercial real estate market, a reprise of the early 1990s, when property values dropped by half, vacancies soared and banks were crushed under the weight of soured real estate loans.'>

Do they realize how *foolish* that statement is? If the "analysts, bankers, and developers" were to predict the imminent collapse of commercial RE, the market would have already responded. Prices would have already fallen.

`BC



To: John Vosilla who wrote (90229)1/7/2008 2:28:56 PM
From: Pogeu Mahone  Respond to of 110194
 
Not only are they not predicting a collapse, the market will be healed by the end of the year.-lol-
Yes
What i buy is very deflated, if it is not i will be a good sport and let some one else buy:0)

<<'Analysts, bankers and developers are not predicting the imminent collapse of the commercial real estate market, a reprise of the early 1990s, when property values dropped by half, vacancies soared and banks were crushed under the weight of soured real estate loans.'

This could easily happen if long term rates jumped a couple of hundred basis points and thus higher cap rates would cut values by 25-30% not even taking into account lower net operating income. Would this then be considered deflation too?>>