XPost: talk.politics.misc, alt.economics, alt.politics.usa
XPost: alt.politics.republicans
https://www.dailymail.co.uk/yourmoney/article-13145821/new-york-community-bank-shares-plummet.html
New York Community Bank stock sinks 20% in one day (and troubled
lender has now lost two-thirds of its value in a month) - is
Shark Tank star Kevin O'Leary’s prediction the bank would fail
in MONTHS coming true?
After markets opened on Friday shares in NYCB fell some 24 percent
It came after the bank revealed additional losses and new leadership
. . .
This is sort of a followup to something I posted a
few weeks ago.
There have been many red flags, even red alerts, of
late about the security of 'regional' institutions,
especially those that made lots of "commercial" loans.
Thing is, post-Covid, a lot of commercial real-estate
(which includes entire buildings and many store-fronts)
has been sitting EMPTY. Either the original borrowers
are broke/gone or they switched to other biz models.
The PRICE of said office/store space also spiked, which
meant bigger loans.
What this MEANS is that a MASSIVE amount of expected
revenue from said loans will NOT materialize. The
banks are stuck with empty space - indeed empty
space that requires MAINT/INSURANCE. A large number
of said loans come due THIS year - and it's gonna be
a blood-bath.
After the last real-estate debacle, the "big" banks
had been a bit more conservative. But the smaller
ones and private speculative lenders were not. This
all started with Silicon Valley Bank, which lent
zillions speculating on 'tech' startups, but it has
now SPREAD.
Note also that big 'blue' cities have been LOSING
biz, large and small, as said cities have descended
into anarchy. Biz is MUCH better off down south now.
Screw NYC/LA/SanFran/Chicago, the $$$ is in Orlando.
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