Commercial Real Estate walkaways

Calculated Risk: CRE Owner "Walking Away"

As I've noted before, CRE owners are much more willing to just walk away than residential owners.

I think that this is a huge problem awaiting us in 2009/2010. The company that I work for just sold off 3 buildings for about $26 million and leased 2 of them back. It will be interesting to see how long the 3rd building will stay empty.

humour?

U.S. Says It Will Bail Out Christmas - WSJ.com

With the government on the brink of rescuing the U.S. auto industry, we have learned that the Treasury Department is drawing up plans to bail out Christmas. "We have reason to believe," said a person close to the matter, "that without an immediate capital injection, Santa Claus will fail before December 24." Mr. Claus could not be reached for comment.

The sad thing about this is that judging from the empty malls this is not too far from reality.

(h/t to angry bear)

It isnt everyday I agree with Megan McArdle

Sheer genius - Megan McArdle

Credit Suisse is paying its top executives in illiquid mortgage-backed securities. I've no doubt that someone, somewhere, will find a way to complain that it's not fair, but it strikes me as a very good idea. If the things really are any good, they make money; if not, they take a bath along with the rest of us.

But I have to agree that this is just fucking brilliant.