Reggie Middleton

Falling Up: The New Business Model

Kudos!

Commercial Real Estate - Make Up Your Own Mind

nice explanatory article. This problem was not difficult to see coming at all. I warned as early and September 2007, and put out loads of research warning that the big CRE REITs would be toast unless they shed assets quickly at distressed prices. What happened? Bankruptcy.

And just as you illuminated, loan extensions simply kick the can down the road. The equity is gone, the modeled cash flows will are not materializing, and the securitization market is close to dead.

As for anybody who feels that this could not have been seen, see below and notice the dates and the content of each URL...

boombustblog.com/compo.../

boombustblog.com/compo.../

boombustblog.com/conte.../

boombustblog.com/index...

www.bloomberg.com/apps...

boombustblog.com/20090...

More on Capital Ratios of U.S. Banks

Well there is plenty of info available that invalidates SCAP.

boombustblog.com/20090...

boombustblog.com/20090...

boombustblog.com/20090...

boombustblog.com/20090...

boombustblog.com/20090...

boombustblog.com/20090...

boombustblog.com/20090...

boombustblog.com/20090...

Financial System Losses Drop Dramatically: Is Policy Vindicated?

If CIT, LEH, Bear Stearns, WaMu and AIG would have adhered to an strict mark to market accounting method of reporting, shareholders and bondholders would have been abreast of their problems several quarters before their failure, just as I was - see boombustblog.com/20080... dated January 2008 for Bear Stearns. The logic behind mark to market accounting is to reveal the actual marketable value of securities and assets in as close to real time as possible. WaMu posted five consecutive quarters of losses in its mortgage division before most analysts even bothered to give it a wink.

As for dwindling losses on banks books, we all know it is due to lax FASB reporting rules. How is it that defaults and charge offs are going up, but bank losses are going down the quarter immediately after they get a break in reporting?

Take a look at just how far these losses are climbing:
boombustblog.com/20090...

boombustblog.com/20090...

PNC, one of the TARP recipients has so many losses piling up that they will be hard pressed to conceal them, even with FASB complicit: boombustblog.com/20090...