Sunday, November 20, 2016

Now May We Have That Economic System Crash, Please!

Authentic businesses do not crash in a bust.  Only the false economy businesses.

Office Depot and Office Max were once the last two giants of the ex nihilo credit based roll-up of the neighborhood stationary store.  Now they are one.

Drove past a downtown Seattle special Office Depot/Office Max installed a few years ago to try to improve sales by mimicking the old neighborhood stationary store.  It has failed.  A sign invites all to visit their inconvenient location in the industrial district next to the welfare office.

Target tried the same thing, will no doubt yield the same results, if it hasn't already.  The dinosaurs can try all sorts of wacky things,  because the fraudulent stock market works on the "buy on the rumor, sell on the news."

Target has also tried to be an upscale fashion store, competing on price.  Again, a contradiction in terms.
“The Shops at Target is an example of how Target continues to explore new programs,” Boylan said. “We’re always putting a unique and fresh spin on the concept of design collaborations with the goal of bringing our guests compelling assortments at great prices.”
It's oer already. To open up "boutiques" in Targets is to create a rumor:  "Target has found a new market."  When they shut it down, then that is news.  Too late, the manager who opened the boutiques has retired with his bonus.  Taken from your pension.

Not to feel bad, your pension is tallied in ex nihilo credit, there is nothing there anyway.  Nothing from nothing is nothing.

Not an hour after driving past the closed Max/Office Depot in the mail came a flier from Office Depot/Max advertising amazing 20% - 50% off sale!  Wow!  But wait, it does not mention the prices upon which the %s affix.  No doubt because one can quickly find Costco prices are cheaper anyway. Costco is closer to a co-op, where the customers are members.

Back in the day the big daddy of the Seattle neighborhood stationery stores was JK Gill.  I think they had three stores. They were rich from a family owned stationary stores, and all the other local lesser stores supported families.

Under ex nihilo credit all those families went out of business and one family took massive profits while employing people who could not earn a living wage.  Multiply this times countless pet stores, corner grocery stores, hardware stores, tire stores, gas stations, clothing stores, on and on.  All wiped out by ex nihilo credit, at interest.  There is a reason all major religions condemn usury, let alone ex nihilo credit at usury.

Now the dinosaurs, like Sport Authoritys, are dropping dead.  It is easy to see Office Depot/Max is on its last legs.  Petco, Lowes, Best Buy, all looking shaky.

My guess is the hegemon will let Trump get settled in, and then let the big crash come Oct 2017.  Who knows, that is my guess.

In any event, their demise is great news.  We can see a renaissance of the family business in the wake of their destruction.


Commercial Real Estate goes up farther are crashes lower than residential... is it coming in 2017?
 "The key default threshold in "junk" bonds is 5%. Once defaults reach that level, the losses associated with the bad loans cause lenders to draw in their credit. They get more conservative and demand higher interest rates and other safeguards that significantly restrict access to more credit. Well, the same thing happens in virtually every other segment of the credit market, including commercial real estate. 
A recent Wall Street Journal article warned about the big problems developing in commercial real estate, especially for shopping centers. Overall, the default rate on commercial real estate loans that have been packaged into securities (about $400 billion of debt) has now breached the critical 5% threshold. The default rate on these securities is 5.6%. That means, going forward, it's going to be a lot harder for commercial real estate firms to move risky mortgages off their books. 
Research firm Morningstar now predicts that 40% of commercial-mortgage-backed securities loans maturing next year won't be paid off. 
If that's anywhere close to accurate, the entire market for commercial real estate lending will be virtually shut down, making it almost impossible to "roll" even relatively safe mortgages forward. This is a huge risk to real estate companies."

The Growth Stock Wire
November 26, 2016

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