Flea Markets : Markets are at risk commercial real estate Now

Flea Markets

Flea Markets : Markets are at risk commercial real estate Now

  • Markets are at risk from commercial real estate, but it won’t “sink the ship

Flea Markets

Flea Markets
Flea Markets
  • Since the pandemic, commercial real estate has undergone significant change.
  • Some on Wall Street are raising concerns about the potential harm to the stock market that could result from businesses and employees shifting to more remote and hybrid roles and companies and financial institutions making significant investments in commercial real estate assets.
  • A. Gary Shilling & Co.
  • President and Founder Gary Shilling speaks with Yahoo Finance about the level of risk associated with investing in commercial real estate.
  • “It’s insufficient to bring the ship down.
  • According to Shilling, “if you look at the subprime mortgage crisis in 2008, it caused the worst recession since the 1930s, with all of its consequences.
  • “I believe that the economy is currently fragile. This is definitely a bad thing.
  • Numerous other factors, such as the inverted yield curve and the weakness of the leading indicators, also support this.”

Flea Markets

Flea Markets
Flea Markets

 

  1. He goes on to say: “This could contribute to economic weakness, but it isn’t going to give us a global collapse, at least as far as we can see right now.
  2. “Watch the entire Yahoo Finance Live episode by.
  3. clicking here for more professional analysis and the most recent market movement.
  4. So Gary, in terms of the possible consequences of that.
  5. I suppose the question is, to what extent do you think it will affect the market as a whole?
  6. GARY SHILLING Not that I think.
  7. It’s insufficient to bring the ship down.
  8. Consider the subprime mortgage crisis of 2008, which caused the worst recession since the 1930s and all of its aftereffects.
  9. I believe that the economy is currently weak. This is undoubtedly bad.
  10. Numerous other factors point to an inverted yield curve, such as weak leading indicators, among other things.
  11. Editor’s note: Nicholas Jacobino wrote this piece.
  12. Video Transcript: While not all Wall Street forecasters believe a soft landing is imminent, the majority do.
  13. Gary Shilling is here to break down some potential risks for the market.
  14. President and co-founder of Gary Shilling, Gary Shilling.
  15. I also want to thank Gary for coming here.
  16. I am aware that, in terms of commercial real estate, you are factoring in a significant potential risk.
  17. And you foresaw the 2008 collapse of the housing market.
  18. What parallels do you observe between these two elements in this instance.
  19. GARY SHILLING: You know, the subprime mortgage market was huge back then
  20. ,but it’s not nearly as big in commercial real estate.It is truly coming apart. Plenty of pain is present.

Flea Markets

Flea Markets
Flea Markets

 

  • However, it’s far more constrained. When you go back in time, a great deal of the nation’s population was involved in subprime mortgages and suffered greatly as a result.
  • In terms of commercial real estate, there are a number of serious issues, such as partially vacant office buildings and employees who are unwilling to return to their workplaces.
  • And while those impacted are in danger, the level of pain is still present, as I’ve said.
  • However, it implies that it is not nearly as common.
    Interest rates are raised by the Fed and so forth. Once more, though, the magnitude is not the same.
  • Yes, this may exacerbate the state of the economy.
  • But as far as we can tell right now, it won’t cause a worldwide collapse.
  • What does it do then, Gary? because we have spent so much time discussing the risk associated with commercial real estate.

Flea Markets

Flea Markets
Flea Markets
  1. It feels like this zombie you’re ignoring in the back of the room right now.
  2. To what extent should we be concerned? How much of a downside risk could this have on financial markets, if you had to put a figure on it.GARY SHILLING: To be honest, I’m not sure.
  3. I’m not sure how long a long time is, but you said for a long time.
  4. But this has become evident over the past few years, especially during the pandemic when people were staying at home and in office buildings.
  5. Usage dropped to roughly 50%.
  6. Of course, a few years have passed.
  7. However, this might reduce real GDP by, say, a percentage point or two.
  8. However, it isn’t comparable to the 5% or 6% declines observed during the collapse of the subprime mortgage market.
  9. And as you might know, I’ve turned my passion for uncovering flaws into a career.
  10. I’ve also located a few.
  11. However, in my opinion, this one is not significant enough to actually bring down the financial markets and the entire economy.

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