Are the Gold Bugs Gold Nuts?????
I guess this is what the Gold nuts call inflation??????
From CalculatedRisk:The South Coast Home Furnishings Centre in Costa Mesa — conceived as a one-stop outlet for home remodelers — has lost customers, tenants and finally ended up in receivership after rents failed to cover loan payments and operating expenses.
The mall was almost 100% leased when it was sold to an investor in August 2007 for $98 million. Now almost half the tenants are gone: The Home Furnishings Centre had 32 tenants, filling almost all of the available space, when it sold ... in August 2007. [The buyer] put $18 million down and borrowed $84 million to cover the balance of the purchase price.
As of December this year, tenants had fled, including the anchor: bankrupt Wickes Furniture. According to court records, just 18 tenants remained and 34% of the space was vacant.
The receiver just accepted a $35 million offer for the 300,000-square-foot center - a price decline of 64% in about 18 months.
Last year it took about $100 million to buy the center, this year it is only $35 million......these stories are occuring all over the nation.....CRE will only get cheaper as more and more tenants shut down and vacate. If the premise is to buy gold as a hedge against inflation, I simply can't see any inflation for years to come.
Businesses shutting down, vacancies rising, rents falling, wages being cut or frozen, prices for assets imploding in almost all asset classes......
Alstrynomics lives in the real world and applies real world facts to extrapolate projections, the gold nuts live in the past and have not yet learned how to count money in the digital age. Do you think the gold nuts still use scales to determine their net worths???