Is Extended Stay checking out???
From the WSJ:
Extended Stay Hotels Inc. is in early talks that could result in turning the hotel chain over to its lenders, a sign of the deep trouble awaiting the commercial real-estate business.
Extended Stay's difficulties signal a new phase of distress in commercial real estate, because they arise directly from the weakening economy. Until now, problems have mostly involved developers unable to obtain refinancing for otherwise healthy operations.
As I signaled earlier.....the credit crisis is going to morph into an economic crisis. The credit crisis is well under way as fewer and fewer can obtain credit......the economic crisis???? The horses are nearing the starting gate.
Expect this downward spiral to occur in a much more compressed time than the Depression following the 1929 market crash. Much is Just in Time manufacturing and banking transactions are interrelated and global.....one big spider web if you will. As one side begins the shake, the spider can feel it no matter where she may be weaving.
Right now there is a whole lotta shakin going on.