Tag: real estate crash

Real Estate vs Supply & Demand

Guest Post by Martin Armstrong

The only good news for real estate is that smart money is starting to look at mortgages as an alternative to unsecured government debt. If you were thinking of buying a new house right now, lock in the interest rate, for with war on the horizon, long-term rates will rise. That does not mean we have a Real Estate Crash like the 1930s. This one is different from anything in the past, and it is certainly not the contrived version of the Mortgage Back Securities of the 2007-2009 Great Recession.

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Inflated And Overpriced Retail Real Estate Turns Manhattan Into “Wasteland”

Via ZeroHedge

The Fed loves to tell us how necessary and vital inflation is for economic prosperity, but in the case of midtown Manhattan’s “prime” retail real estate, it is doing nothing but helping cause once extremely prominent shopping areas to become the very same “ghost towns” they turned into during the 2008 housing crisis. Mayor DeBlasio’s asinine solution to this issue created in part by faulty government policy? More government and more regulation. So much for the recovery.

As if brick and mortar retail didn’t have enough problems to deal with being methodically decimated by the ever growing behemoth that is Amazon, store owners are now facing rent that is simply so high that it makes it prohibitive for them to open retail shops and do business in once prominent areas of downtown Manhattan.

On Saturday, the New York Post wrote an article confirming our writeup from late March – that these high prices were driving businesses out of town:

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