Geithner Says Commercial Real Estate Woes Won’t Spark Crisis – What!?
In a recent article on Bloomberg.com Geithner is asked about Commercial Real Estate setting off another banking crises.
Geithner Says Commercial Real Estate Woes Won’t Spark Crisis – By Rebecca Christie and John McCormick
Bloomberg.com
http://www.bloomberg.com/apps/news?pid=20601087&sid=aGGKUQhUZqaQ
The GDP number was in reality flat, without the stimulus attached.
Geithner seems to be talking out both sides of his mouth saying there are signs that things are getting better and in the same sentence saying how hard it will be going forward.
“I don’t think so,” Geithner said, when asked whether commercial real estate could set off another banking meltdown. “That’s a problem the economy can manage through even though it’s going to be still exceptionally difficult.”
As opposed to crises what is difficult? What does difficult look like?
If we look at this through the 5 stages of grief analogy:
- Denial
- Anger / Resentment
- Bargaining
- Depression
- Acceptance
Then I would say, although everyone goes through these phases at different speeds; collectively our country is in stage one Denial.
Shouldn’t there be 6 stages here? Where is blame?. Watch Fox and MSNBC and they are in a mix of denial, anger and blame.
Geithner seems to say that we have to make a lot of changes to make the economy less vulnerable to “catastrophic” damage.
I know that the federal government is trying to do everything they can to keep all of us in our comfort zone, some more than others, but isn’t this like the over protective mother that keeps their child out of harm’s way to the point where the child is emotionally, socially and environmentally scarred?
By controlling everything and not allowing anything to just fail; are we helping fix or just prolonging the inevitable?
We may not see the banks go into crisis over what is surely coming up from a toxic mixture of unemployment, real estate market collapse, increasing inflation and weakening dollar, but not because they necessarily shouldn’t.
Become a member of the Commercial Real Estate Distressed Assets Association and come help us work on and effect positive change. http://www.credaa.com
JW Najarian
