CRE

Over the past two weeks, Trust Preferred (or TruPS) CDOs have gained prominent attention as a result of being the first, and so far only, security that the recently implemented and largely watered-down, Volcker Rule has frowned upon, and leading various regional banks, such as Zions, to liquidate the offending asset while booking substantial losses. But... what are TruPS CDOs, and just how big (or small) of an issue is a potential wholesale liquidation in the market? Courtesy of the Philly Fed we now have the extended answer.

For all the endless talk of a recovery during the past five years, there is a very tangible reason why for most people this is nothing but spin, propaganda and lies: when one strips away the retroactively adjusted GDP, the seasonally adjusted (and politically mandated) counting of temp jobs, the constantly upward revised jobless claims, the Fed's $4+ trillion balance sheet of course, and even the declining (yes, declining) real disposable income per capita, what one is left with is the lowest loan creation out of a recession (or depression) in history, and is at indexed levels last seen during the Lehman collapse over five years ago!

Let's discuss what an increase in rates, even a slight nominal blip, really means for those of us in the EU and the US.

The beast is howling - and Krugman thinks it's his cat purring.

AIG shareholders aren't just paying interest on its own bailout, they are paying (paid) hefty interest charges on the bailout of the most connected entity in the history of finance, the VAMPIRE SQUID, Goldman Sachs!

Foreign money is flowing heavily into US real estate markets. Now some think that foreign money is going to prop up the entire market but this is simply not the case. The money flowing in from abroad is going specifically into targeted markets. This isn’t necessarily a US trend only. Canada is experiencing a massive housing bubble from money flowing in from China in particular. Here in Southern California many cities are seeing solid money flowing in from Asian countries. You have this occurring while big fund domestic investors are buying up low priced real estate cross the country as investments. What occurs then is the crowding out of your typical home buyer. I get e-mails from local families looking to buy saying they were outbid by $50,000 or $100,000 for properties that had nothing special. Even after the crash, why does it seem hard for domestic buyers to purchase a home?

Spain would've banned this analysis!

What is the value of a REIT that has nearly ALL of its portfolio properties underwater? It damn sure isn't what its trading at now!

PEI is at risk of "JingleMailing" properties. Even if foreclosure doesn't occur, here's more evidence of imminent distress as Value Line says buy, I say #crash & management takes down more than shareholders in compensation!

Not very, I presume. Until shareholders see real dollars flowing back to the extent that dividends can be materially boosted, keep hope alive...

Oppurtunities such as this don't come up very often. My job is to cause reality to meet share prices. It's time to get to work, pardon me...

Witness in real time the fundamental collapse of a REIT lauded as a buy by the Sell Side of Wall Street. Come on, admit it! Blogs/alternative media are a better source of analysis than the bank that you just parked your life savings at!!!

You can already see the collateral damage stemming from anemia in LIeBORgate banks... Capital Account's Lauren Lyster stimulates the conversation.

Print, print, print as they may, central bankers will make no leeway until the true problem falls sway... ©2009-2012 the Lyrical Reggie Reg...

The long anticipated downgrade of the recently bailed out Spanish banking sector has arrived. Moody's just brought the hammer down on 28 Spanish banks. Also apparently in Spain banks are now more stable than the country: "The ratings of both Banco Santander and Santander Consumer Finance are one notch higher than the sovereign's rating, due to the high degree of geographical diversification of their balance sheet and income sources, and a manageable level of direct exposure to Spanish sovereign debt relative to their Tier 1 capital, including under stress scenarios. All the rest of the affected banks' standalone ratings are now at or below Spain's Baa3 rating." Can Spain borrow from Santander then? They don't need the ECB.