Sunday, November 16, 2008

Buckle Up- 45 days til 2009

Sill too much bad debt on the bank's balance sheets has kept the commercial lending market FROZEN. Yes deals that are 50% LTV under 4 million can get done, but then you've eliminated 80% of potential deals.
It seems that the US of A has to hyper-inflate and spend 2 Trillion dollars over the next three years rebuilding every single solitary road,bridge, tunnel and transportation infrastructure that needs repair in order to keep the unemployment rate below high levels.

I can say that NJ remains at least for now much better than middle America since within 5 hrs of NY is 1/3 of the population of the country. Space will take time to be absorbed and older buildings will be candidates for redevelopment. Prime is at 4% going to 3% and the 10 Year Note is at 3.75% going to 2.75%, which would help the most important rate we need to be changed, that is the 30 year fixed. Can you believe that its not 5% yet? That's where it needs to be or lower within the next 9 months to get any 2nd home buyer interested in placing their bet and move this economy along.