Property Grunt

Friday, September 04, 2009

There is no recovery

"It Could Get Ugly Very Fast": Banking Crisis Grows, FDIC's Funds Shrink

Meltdown 101: Why banks' struggles have worsened

I know this is redundant to say but if the FDIC shuts down, well, there won't be bank runs, there will be bank stampedes. And the number of banks being shut down gets higher and higher. And of course it does not help that everyone is strapped for cash, unemployment is at an all time high and back to school sales were abysmal which indicates how bad Christmas is going to be.

Then we have this nonsense.

I spoke about this before in a previous entry.

Broker CONfidence

As far as I am concerned it is more of the same. A lot of brokers, hell a lot of people in general are taking any flicker of light as evidence that we are back on track but they seem to be able to acknowledge the fact that darkness still surrounds us.

In a previous interview with Curbed, the Great Jonathan Miller stated any significant recovery is unlikely until the credit markets recover. And as the evidence shows, banks are being taken over by the FDIC at a rapid clip. And if there is no credit available to these banks to stay a float, well there is not a lot of OPM for sellers out there.

I don't know what to call this but it is not a recovery. Yes. Deals are closing but our backs are still against the wall.