All of this makes me so sick… who the heck is making all of the money that is lost? or who is making money on what government is giving away?

According to The Wall Street Journal, delinquencies on commercial mortgages are soaring. The delinquency rate on $700 billion in securitized commercial real estate loans has more than doubled in just the past six months. At 1.8 percent, it’s still low on an absolute basis. But it’s the direction that counts, and analysts are now expecting delinquency rates to rival those seen in the early 1990s commercial real estate collapse.

So what does that say about the value of CMBS — Commercial Mortgage Backed Securities? The value of those securities SHOULD plunge. Yet industry lobbyists claim that it’s not crappy fundamentals driving their value down, it’s liquidity — and that they shouldn’t have to take big mark downs as a result.

Geithner Plan Structured as a Blatant
Wall Street Giveaway …

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U.S. office vacancies hit 15.2% and are rising – WSJ

WSJ reports cos, struggling to cut costs, dumped a near-record
25 million square feet of office space in the first quarter,
driving vacancy up and rents down, according to data to be
released today by Reis. Businesses that needed to lease space
took advantage of the market weakness to extract concessions
from landlords. But the trends exacerbated financial woes
for owners, especially those who owe more on their mortgages
than their properties’ current value.

The office vacancy rate nationwide rose to 15.2% from
14.5% in the previous quarter, and likely will surpass
19.3% over the next year, according to Reis.

That would put the vacancy rate above the level during
the real-estate bust of the early 1990s,
the worst on record. Effective rents, which include free
rent and other landlord concessions, fell 2% in the first
quarter to a national average of $24.16, the largest drop
since the first quarter of 2002, according to Reis. Sublet
space, on average, is going for between 10% and 15% less
than what landlords are charging.

The weakening commercial real-estate market is posing
yet another threat to the ailing economy because it
is causing the value of buildings to plummet, often
to less than the amount of their mortgages.

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I just came across this interesting article and wanted to share it with you as this is quite disturbing on what is going on with this whole bailout crap.

Published on Sunday, March 22, 2009 by Rolling Stone

The Big Takeover: How Wall Street Insiders are Using the Bailout to Stage a Revolution

Yahoo had article on their website which is so disturbing in my opinion. Someone is making such a big dope of money. Mark my words, banks will be the biggest threat to humanity in the near future. Look at the following:

1)       Banks are buying other banks for nothing, or very little $$$, JP Morgan for example, they got some institutions with FED’s help for nothing, seriously nothing. Multibillion dollar company sold for fraction of a cost, which is insane.

2)      Banks are getting loans from FED in billions of dollars.

3)      Money that we are “giving” away to AIG is ending up at banks anyway in form of insurance payments from AIG. According to yahoo $90 billions of bailout money went towards banks on top of what we did bailout already.

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What the heck is going wrong? I am so afraid of the future. Stock market went down to the lowest levels in 12 years. AIG reported biggest quarter drop in the corporate history, 62 billion dollars, FED is now giving additional 30 billion dollars to AIG and people saying it’s not over, they already received over 160 billion and they might get as much as 250 billion or quarter of a trillion if you will. Concept of millions vs. billions and trillions just is the same for people now days, when did this concept change? I can’t even image a million dollars and they are talking about billion of them, or trillion.

So why are we bailing out AIG? Well AIG is an International Insurance Company; they are in very risky business of insuring different things against different kind of odds, one of which was home mortgage insurance. AIG has 74 million insurance policies in 130 countries worldwide and it covers everything, it insures major airlines against catastrophes, it insures big Hollywood movies against injuries to their stars, it even insures oil companies against hurricanes wrecking their offshore rigs. All pretty standard stuff but here is why company is tanking. AIG insured millions of mortgages that were repackaged and resold to investors and lost billions when home market collapsed and housing bubble bursted and now it has to pay out on those policies. So question is why? We all need insurance for everything in our lives, that how it became a standard in American we are just forced to take insurance for everything. What would happen if AIG would fail? Nobody knows, no one can predict or even is trying to predict it. In my opinion we should let it fail. What pisses me off is the fact that our government is so selective to whom we bailing out and whom we not bailing out. We did let ENRON, MCI/WorldCom fail, we did let small banks fail, we do not care about small businesses to fail, but we do care about big banks not to fail. That is so screwed up; it seems to me like friends help friends survive and who cares about others. Approach, that it seems to me as a motto of the game where FED is helping big banks to survive and let others under, you either with us or against us, play by our rules type mentality. If FED was lending our money to the big banks to give them liquidity to help people refinance their homes or turn around home sales not to drop so much further then why the heck banks don’t lower mortgage rates to make them affordable again? Why banks such as Citi or Chase are slamming us customers with any possible fees? Why those banks giving us such low interests and keeping all money to themselves and in particular rewarding themselves for failures with big bonuses? Banks are afraid to lend to each other? Why? What is wrong with them? What’s so shady that they do not trust each other? So big deal, today City announced that it will help out people to lover their mortgages by $500 for 3 months if they lost their jobs. City bank, I have few words to you, screw you, too little too late to make such gesture after so much pressure and after such big screw-up, your reputation in my mind is all broken. I am pissed about this whole situation because I am so afraid of the future of our country. $1400 is how much each American is bailing out AIG so far. How about other costs of other bailouts?

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