Worse is Getting BAD!!!!!
Silicon Valley Office Vacancy Rate over 19 Percent
Some of the increase in the vacancy rate was because of new office space coming online, but it sounds like Grubb & Ellis expects a significant amount of sublease space to come on the market too. That is usually a bad sign for rents - and also suggests companies don't expect much growth.
We are now seeing 20+% vacancy rates in many important cities across America...and the trend is toward more vacancies.
20% seems to be the magic number right now for declines.....20% unemployment, 20% revenue declines, 20% tax receipt declines, 20% vacancies.......yet the recession is over and a DEPRESSION is only a 10% decline in GDP?????
Now we are seeing credit tightening further to small business and citizens....Citi is raising a number of credit cards standard rates to 29% and cutting off completely gas cards. Other credit card issuers are engaging in same or similar behavior.
You will soon learn that credit default swaps incentivized banks to make bad loans...an unprecedented amount of bad loans. Bankers profited handsomely and asset prices skyrocketed in the process. As a result, by overpaying and overborrowing for assets, our nation has been infected with a debt load that mathematically can't be paid back. This MASSIVE debt load is burdening our homes, shopping centers, office buildings, citizens, businesses, cities, counties, states, hospitals and schools.
It is suffocating the cash flow away from goods and services and torwards servicing an unsustainable debt load. It was obvious to Alstry when the debt started defaulting, the problem was so massive and the counterparty impact so severe...our nation's economy would collapse.
And now it is......At this point, it appears we are in the second or third inning of a nine inning baseball game which could easily go into extra innings. Already we have seen massive economic fallout here in America and around the world.
The state of our State is dire. We are now in a State of Emergency due to a pandemic....BEFORE 11.10.9. The dollar is crashing as our nation is counterfeiting $2 Trillion dollars per year yet few seem to be aware....even with massive deficit stimulous....banks are shutting down at an accelerating rate as over 500,000 Americans are losing jobs every week and bankruptcies skyrocketing...especially for small business owners who are generally not counted in the unemployment figures.
These are the facts....there is nothing I can do to change them. But one thing for sure..if we keep heading in this direction...bad will be worse than expected......MUCH WORSE.