The Next Financial Implosion Is Not Going To Be About The Banks!
By Gordon T Long
GoldSeek.com
Friday, 3 March 2017
US COMMERCIAL REAL ESTATE
The Global Real Estate market dwarfs all financial markets by any comparison.
The Global Real Estate market being so large, it has always been stable and as such it is the favorite of institutions for long term investing – specifically Insurance companies, pensions, trusts endowments, small banks & credit unions etc. However, if it were to be destabilized only slightly it would have profound consequences globally, as well as in the US. The US Commercial Real Estate market presently approximates $13T or about one fifth the annual Global GDP.
A number of paradigms shifts currently underway and beginning to emerge could be just such catalysts.
The Us Commercial Real Estate market is so large it needs to be considered by sectors – Industrial, Office, Rental / Apartment and Retail. Through financing, regulations & codes, securitization products etc they are inexplicably linked. A shock wave in one will have consequences across the entire industry that can alter credit terms, financing availability, collateral requirements, rollover funding etc. In our new world of globalization, factors such as changes in foreign capital flows have a profound impact on any of the above variables.
Few may appreciate that the US is a dominate destination for such foreign capital.
The Rest…HERE
