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Re: Staples Slides As Strip Malls Head Towards Extinction 

By: oldCADuser in FFFT | Recommend this post (4)
Thu, 22 May 14 7:44 AM | 81 view(s)
Boardmark this board | Food For Further Thought
Msg. 63914 of 65535
(This msg. is a reply to 63905 by killthecat)

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"Artificially low interest rates . . . the next time you see a mile of half-abandoned strip malls, think 'Obamaville.'"

Again, the fed funds rate reached its current level in December 2008, BEFORE Obama took office, so how is it suddenly his fault?




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The above is a reply to the following message:
Re: Staples Slides As Strip Malls Head Towards Extinction
By: killthecat
in FFFT
Thu, 22 May 14 3:10 AM
Msg. 63905 of 65535

Hi Key:

Staples was one of my old customers when they were building their company. Maybe the second nicest people I ever worked with. The Christian Science Church folks were the best.

Is it the perfect storm destroying our retail model?

"This is a textbook case for the Austrian business-cycle theory: Artificially low interest rates and loose money produce overinvestment, by both bankers and builders, in a bubble — this time, offices, apartment buildings, and retail space — that can’t be sustained once the artificial stimulation comes to an end, as it must.

In this case, that malinvestment has to be worked out at two levels: At the financial level, among the lenders and borrowers, but also at the physical level: There’s going to be a lot of dark storefronts out there, with serious long-term consequences for nearby neighbors and for local real-estate markets: Foreclosures will put more property onto the market, driving down rents and subsequently making existing loans less tenable as the cashflow of commercial properties is diminished. They called the Depression-era tent cities “Hoovervilles.” The next time you see a mile of half-abandoned strip malls, think “Obamaville.”"

I wonder who will end up owning all that distressed property?



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