CRE, B-WEEK, Geithner, & Bernanke - Perfect Together

Its nice to know that after Wilbur Ross and the FDIC alerted to us that Commercial Real Estate is the next disaster, the genius wunderkinds at BW had to go to work on a piece of their own.

http://www.businessweek.com/magazine/content/09_46/b4155042792563.htm?chan=rss_topEmailedStories_ssi_5

Have I not been saying the same for the past 6 months?

http://tradersutra.blogspot.com/2009/07/repeatcre-is-next-disaster.html

http://tradersutra.blogspot.com/2009/06/cre-no-uptick-till-2017.html

http://tradersutra.blogspot.com/2009/07/cre-wrong-policy-again.html

http://tradersutra.blogspot.com/2009/04/cre-get-ready-for-next-down-leg.html

I must have another 10 posts on CRE being the next black hole.

But of course Tim Geithner doesn't think its a crisis.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aGGKUQhUZqaQ

Doesn't Geithner sound a lot like Bernanke here?

http://tradersutra.blogspot.com/2009/07/ron-paul-lays-smackdown-on-bernanke.html

http://tradersutra.blogspot.com/2009/08/opposite-ends-of-reality.html

Geithner goes on to say:

“I don’t think so,”
“That’s a problem the economy can manage through even though it’s going to be still exceptionally difficult.”
“You can say now with confidence that the financial system is stable, the economy is stabilized,”
“You can see the first signs of growth here and around the world.”

When asked whether commercial real estate could set off another banking meltdown.

All I can say is he is as clueless as Bernanke was at the eve of the subprime crisis. Just match up Geithner's words about CRE and Bernanke's thoughts on Subprime.

Does Geithner actually read the papers? Or does he just read the analyst reports on CRE straight from Goldman and BOFA's trading desk? Because he obviously is not living in realty. You cant tell me that Wilbur Ross, FDIC, and a million other people have CRE pegged wrong.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/11/06/BUO71AFVTV.DTL&type=business

http://business.theatlantic.com/2009/11/500_billion_of_commercial_real_estate_to_mature_soon.php

http://www.earthtimes.org/articles/show/fitch-conference-commercial-real-estate,1032683.shtml

http://www.bloomberg.com/apps/news?pid=20601103&sid=aA71rZ6s2kxk

Its blatantly obvious that CRE is the next serious crisis. Unfortunetly, its not the last shoe to drop.

After that? OBS/SIVS and the collapse of shadow banking

http://tradersutra.blogspot.com/2009/07/shadow-banking-for-dummies.html

After that? Shadow Housing Inventory.

http://tradersutra.blogspot.com/2009/09/shadow-inventory-rising.html

After that? HELOC

http://tradersutra.blogspot.com/2009/07/consumer-halcyon-days-are-over.html

After that? Auto Loans
Its a never ending sea of red ink and at every turn our leaders will tell you that there is nothing wrong. Its all controlled.
Yeah right.