The Accuracy of Alstrynomics
The world is finally beginning to wake up....
(From CalculatedRisk and Simon Properties)
David Simon [Chief Executive Officer, Simon Property Group Inc., the biggest U.S. shopping mall owner] ... said the company doesn’t plan to begin construction on new projects or major redevelopments in 2009 and there will be little new U.S. retail construction for years to come.
“The new development business is dead for a decade,” Simon said on today’s call. “Maybe it’s eight years. Maybe it’s not completely dead. Maybe I’m over-dramatizing it for effect.”
No Mr. Simon, you are not over-dramatizing. Relative to what it has been for the past decace, despite any stimulous plan, residential and commercial construction will be dead in America for the next ten years.
Considering construction was a HUGE segment of the economy.....the pain from the slowdown is just beginning.
Hurry buy gold, pretty soon few will have money to buy it from you. The chemo will start flowing once Volker is going. It won't be fun but will set the foundation for a future recovery.
Can't wait for PositiveAlstry to take the stage....but it likely won't be for a while.