The GFC was never fixed. I was at a company supplying engineered products to manufacturers. Lehman was a big hit but we and partners were prepared. Manufacturing came back second half of 2009. In 2010, the Fed should have stopped QE. Instead it doubled down to save big banks at the expense of main street. It’s all been paper money covering up distorted activity since then as local bank disappears. Main Street paid for the bailout over some ten years as banks put money at Fed and made five percent interest while grandma’s savings account was less then 0.05%. Something bad lurks under the waves of fake money. 2024 should be interesting for CRE. The smart ones got out last year and it wasn’t easy.
1930: Medians, % of income housing purchase 300% rent 16% car (purchase) 46%
2023: Medians, % of income housing purchase 800% rent 42% car (purchase) 85%
The GFC was never fixed. I was at a company supplying engineered products to manufacturers. Lehman was a big hit but we and partners were prepared. Manufacturing came back second half of 2009. In 2010, the Fed should have stopped QE. Instead it doubled down to save big banks at the expense of main street. It’s all been paper money covering up distorted activity since then as local bank disappears. Main Street paid for the bailout over some ten years as banks put money at Fed and made five percent interest while grandma’s savings account was less then 0.05%. Something bad lurks under the waves of fake money. 2024 should be interesting for CRE. The smart ones got out last year and it wasn’t easy.