This could work. The Wall Street Journal is reporting today that the Fed is considering using TALF funds for the commercial real estate market - a move which could easily help avoid the worst outcome in this sector.
If you're still super negative, it's easy to point to commercial real estate as being the next shoe to drop. The argument that [ ] will get worse before it gets better always sounds good to some people. It is tough or even stupid for any bank to make new commercial real estate loans when existing, performing real estate loans are trading at junk bond yields, so this could easily be an area where a little pressure would go a long way.
If you're still super negative, it's easy to point to commercial real estate as being the next shoe to drop. The argument that [ ] will get worse before it gets better always sounds good to some people. It is tough or even stupid for any bank to make new commercial real estate loans when existing, performing real estate loans are trading at junk bond yields, so this could easily be an area where a little pressure would go a long way.
"If you are going through hell, keep going." Winston Churchill
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Warren Buffet's Berkshire Hathaway annual meeting is tomorrow. I'm willing to bet you a box of popcorn that he is going to be all bulled up about the economy (and maybe stocks), and that he is going to put a lot of money to work over the next 12 months.
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