In today's MSM front pages:
EU Seen Agreeing on Project Bonds—Not Eurobonds - of course not! 17 different nations, 17 different cultures, 17 different sets of federal laws (not to mention local municipality legislation), 17 different economies, 17 different banking systems... It's this lack of homogeneity that brought the Euro concept to its knees in the first place. Why throw good money (what would have went into Eurobonds) after bad (what went into a flawed Euro concept) to justify flushing it with awful (the multiple bailout mechanisms/default losses, ECB balance sheet bloat)? Reference A Summary and Related Thoughts on the IMF’s “Strategies for Fiscal Consolidation in the Post-Crisis
Germany Sells 2-Year, 0% Bonds Amid Greek Anxiety - Bubble, bubble, toil and trouble! It's as simple as that. Why lend money at risk for no return? Reference The Biggest Threat To The 2012 Economy Is??? Not What Wall Street Is Telling You... where I explained in explicit detail the risk this view of Germany causes the entire European continent and the UK! As a matter of fact, a follow up opinion of the subscription research illustrated subject company (an insurer) in this write-up will be the topic of my next post. After all, we can't let GS and JPM blow up the world by themselves, can we?
Roubini Strategist: High Yields Are Europe's New Normal This is a no brainer. How about high rate volatility as well as all of the financial entity fun that that will ensue? Here's a better question. What happens to real estate values as interest rates increase? Yep! You heard it here first... Watch As Near Free Money To Banks Fails To Prevent Nuclear Winter In European Real Estate. As a matter of fact, We're At Step 2 Of The Global Real Estate Compression!
Of course, after pondering that query, must become more investigatory - What happens to bank mortgages as CRE values plunge? So, Can Europe Nationalize All Of Its Troubled Banks?
CNBC reports Banks No Longer 'Float Above Their Countries': Deutsche - Banks' countries of origin have become important again. No shit, Sherlock!!!
I warned heavily last year about the connection between higher interest rates and falling real estate in Europe...
Reggie Middleton as the Keynote Speaker at the ING Real Estate Valuation Seminar in Amsterdam
UK Retail Sales Slide at Fastest Pace in 2 Years in April - Well of course. Don't these guys read the BoomBust??? The Greatest Risk To Retail Commercial Real Estate Is? Sovereign Debt! Macro Headwinds! Popping Bubbles! Busted Banks! No, It's The Internet! and Prepare For CRE Crash And Burn Marks At A Shopping Mall Near You
'Nuff said! Subscribers, as (not if, but as) this breaks, these are the companies trading at the valuations that are most shortable/profitable in my opinion... Relevant downloads for subscribers only! Click here to subscribe...
- US REIT Fire Sale Scenario Analysis
US REIT Foreclosure Scenario Analysis
- US REIT Sample Property Valuation
- US REIT Cashflows and Debt Preliminary Analysis
European CRE (this one is a bit dated)
And the cat that was already let out of the bag...