Game-Plan for the Commercial Real Estate Collapse

Game-Plan for the Commercial Real Estate Collapse. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
Oh, they got a plan. Yep, yep. There is a
game plan for the commercial real estate collapse. This is
what I see happening. Well, first and foremost, let's let's
go to the scoreboard, shall we. The delinquency rate for
commercial mortgage backed securities that are tied to office properties

(00:40):
reached ten point four percent in November. Okay, the peak,
the all time high was ten point seven percent, and
that was during the two thousand and eight financial crisis.
This rise, this ascent, is the fastest two year increase

(01:01):
on record. It's accelerating, it's it's it's not getting better,
it's not getting it's getting worse. Again, we told you
all of this was going to happen. Here are some
of the things that they're saying, Okay, are factors. Okay,

(01:23):
malinvestment due to artificially low interest rates and excessive credit expansion,
obvious zoning restrictions hampering property repurposing. That's yes, it's most
certainly a problem. Again, sometimes communities get nimby when it
comes to converting some of these properties. But again and
also sometimes a property can't be converted. It's just too

(01:47):
expensive and too difficult to do so. And of course
the fact that nobody wants to go back to the office. Okay,
some of the things that we've thrown out there. But anyway,
what I see happening these all of this papers been
on the books. We've talked about it for some time,

(02:08):
especially with a lot of these smaller, smaller to mid
size banks as well, and big banks have you know,
tons of this paper. Also, they're holding out. They're holding
out the best thing for them, I'm telling you with
how they're thinking. They're saying. Listen, we've got Donald Trump

(02:29):
coming into office on January twentieth. We start saying things
are looking terrible. We start saying we're going to default.
Bank is going to fail. Throw this on his lap
in the first quarter of his presidency. Oh, he's not
going to want to deal with that. He's not gonna
want to deal with the politics of bank failures. And

(02:52):
they're basically gonna they're gonna call for bailouts that's what
I say. Again, that's what I see them doing. I
see that they're they're they're extending and pretending right now
so they can drop this crisis at the desk of
Donald Trump. Assuming that Donald Trump said, I can't allow

(03:13):
this to happen. And oh my god, the news stories.
People are gonna, people are gonna the banks are going
to fail, and people are gonna lose the money in
the banks and boot bail out. I certainly hope, I
certainly hope that the President doesn't do that. Let them fail,

(03:37):
Let them fail. Failure is it's a good thing. Oh yeah,
it is. Failure teaches you. Okay, if there's no there's
some consequences for bad actions or malinvestment or whatever it
may be. What's to stop people from doing it? Again?

(04:02):
Let the banks fail? You got all this paper? Sucks
to be you. We're done. Bailout nation needs to stop
at some point in time. Again, this is what I
see happening. Okay, I see this happening probably within the
first three to six months of Donald Trump's preside. I

(04:28):
don't know what he's gonna do. I don't know what
he's doing. I know what I like him to do.
We shall see watch dog on Wall Street dot com