The Time Bomb Lurking in All Those Empty Office Buildings 

You showed the Aon center in chicago, not LA

AND THEY SUE TRUMP FOR OVERVALUING HIS PROPERTY???

It would be nice if you talked about how retirement funds are used to back these bad investments while Chinese use fentanyl money to buy new construction

OMG I HOPE SO FINALLY A RESET

This is why I have a theory about that $355 million/$455 million court judgement against Donald Trump in New York. His properties were valued at that amount before Covid and Zoom made the whole downtown financial district obsolete. Now those Trump properties are only worth what the Court says they are, a mere fraction of that $450 million, maybe only 18 million. So lets say the NY court seizes and then sells all the Trump properties for less than $100 million. Trump can take the court judgement to the tax man and claim a massive deduction. He can also appeal the verdict to the supreme court and not only get the judgement overturned, but the supreme court can say he's the victim of lawfare as a form of political harassment and they won't tolerate any further cases being brought against him. So now NY has to make restitution for the amount of $455 million because their judgement has been overturned on property that they sold for less than $100 million, because that's actual market value in 2024. Trump gets to offload worthless property without losing a dime on it's original pre Covid market value and pays less in taxes for it. That's the real Art of The Deal.

Years ago🗣️ they ALREADY knew this was gonna happen

Exactly!

But it was literally the pandemic that started this

@@jimbojimbo6873 no the pandemic was just a black swan event. This has been going on for over a decade.

@@jimbojimbo6873 The pandemic was a once every hundred year occurrence. Almost impossible to predict and it crushed the world's economy. No way to predict that!

Of course. They're too big to fail.

Of course. Printing more money would make us suffer a bit inflation. But if a burst happens, it may lead to chaos

We wish. What's coming is far worse. Look at BY, LA, Oakland, Chicago, San Francisco, and numerous other cities.

Yep. The taxpayer is the ultimate loser. 😂

as is tradition

Funny how you vote for the politicians that help them..

Funny how what leftists call capitalism, is actually socialism, and it's FAILING, as expected and as it always does.

Student loan “relief” is a blatant handout for people enriching themselves. Blue collar workers shouldn’t be footing the bill for the education of the white collar class.

Neither should get handout, that's the solution, not give away money to debtors for their degrees in gender studies

@@bobcortez9471 I get that you’re triggered but it’s pretty pathetic that you got emotional and made this about your identity politics

Often the taxes are based on what the city evaluates a property to be worth. So they have to pay taxes as if they were receiving market rate rental while being hampered with the rent control. The only way that landlords can afford rent control is if their taxes are lower and they can afford the maintenance of the property otherwise it's a melting ice cube.

Office space is very hard to turn into residential.

@@Westhamsterdam true, but for those that can do it and end up doing it, it will bring down the available inventory of offices bringing it closer in line with demand.

Commercial real estate isn't the same as residential, vast majority of these buildings can't be easily or at all converted into housing because they're giant office blocks built to be places of business and aren't necessarily fit to be inhabited on permanent basis.

As long as you understand it's a disaster...a man made disaster.

Bingo

Universal health care? Comunism woke agenda

This issue wasn't part of 08. That crash was the plebs debt. This is the 1%'s debt. And if you're in my situation you don't have any debt and are waiting for the crash to capitalize on the greedy who put the cart before the horse.

Correct. I have been saying this. But people, especially conservatives, ususlly tell me to just stop drinking that latte, or stop eatin toasted avocado,or living beyond your means, or quit your job and get a better job, or go back to school, etc etc. In otherwords, they say anything to gaslight you to believe that you are the problem rather than the bad economy from 2008.

@@wajutiem08 People who see outside forces as the problem might not be 100% false all the time but they are less likely to make intelligent decisions to change things themselves. I took advantage of the opportunities since 2008 opportunisticly (yes I feel the need to stress that. It's the core of financial sucess, no matter how grand or modest), and feel like I can cheer on an obsolete sector disappearing now. Of course there are young people now who did not have any opportunities yet and will be hid just as hard as young people have been hit in 2008. But it's not the majority. It's not that it is wrong that the problems of 2008 have not been dealt with. It's that the general moron things he can trusts politics with solving the problem for him. What have you done since 2008? How have you prepared for the next crash? And what where you willing to give up for it? There are a bunch of movies about 2008 and they all show to some degree it's not just one part of society that fucked that up. The banks, the government and the "little people" all knowlingly and ruthlessly participated in what was going on and then blamed each other like whiny little bitches. My favourite of the bunch is Margin Call, because of the "Fuck Normal People Speech" ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-nBEgJZdd2BQ.htmlsi=SPJKF6SXNnGJfEOV Leverage, CDO, MBS, government housing subsidies and inherents problems with financial regulations have all been throughly discussed as important factors, but the unfathomable hypocracy of the ordinary consumer gets too littel attention in the whole issue. You didn't get anything out of the shit you have to pay for now? Well, I don't know. Maybe not. Maybe you are super special. But that makes you 1 in 10 million or so.

You can trace the wreckage in the current American economy and the commercial real estate collapse to 1982, when deranged SEC chairman John Shad changed the SEC's policy since 1934 on share buybacks. Shad's new rule 10b-18 stated that share buybacks by corporations were no longer presumed to be market manipulation and therefore illegal. Instead, Rule 10b said corporations had a “safe harbor” to buy back their stocks, which would usually cause their share price to go up. This one rule change put "greenmailers" like Carl Icahn and banksters in charge of Wall Street. "Activist" investors could threaten to take control of companies unless the companies went into debt to buy back their shares to raise their price and ensure the greenmailers made a handsome profit. The companies now had to pay off the loans they took out to buyback their shares. Many times in the 1980s, the companies were unable to meet their new debt load from buying back their shares. Then, bankruptcy. Every goniff with an M.B.A. degree got into the act, calling themselves hedge funds or private equity. This debt death spiral continues to the present.

But knowing how this ends, when real estate development gets overextended it's perfect free market to bail these guys out. Good luck on getting the same on your mortgage.

I never understood the point of it. "oh yeah, sound my uncle beating pans or strange violin is what is missing in this video"

or you could ignore the noise....

But how do I know when to be sad? Or When to be happy? Help me!

Background music is for making whoopie, not for serious journalism

I came here for the content, stayed for the background music

Interesting. Doesn't it require approval from departments like Risk ?

​@@ahmedzakikhan7639the risk department operate on stakeholder risk decisions. The risk department never take decisions, only get consulted and evaluate.

You should be locked up in jail.

Can't make anything off the interest, so make it on the volume of loans with the origination fee instead. Pretty slick, until it all falls apart.

@@droldsw31 And that my dear sir is why I don't have any respect for those involved in the financial industry.

my thoughts, exactly!

Absolutely this!

It all comes down to this "poster family" of the 1980's where "dad" would commute to downtown and "mom" would stay at home to cook, clean the house and pick up the kids. Nowadays in most families both parents work full time and sometimes you would see them stretching their work hours more and more, WFH and flexible hours was a small blessing for the deteriorating white collar middle class families - but hey the moronic managers wanted to "actually see them working and wasting their life away" so yeah back to meaningless work environments.

I did wonder why corporations were pushing for a return to office's when in the past they tried every thing they could to reduce expensive rents. Work from home at first glance is a financial gift to corporations.

@@grogery1570but it diminishes the self-importance of management, so …

They bring in those with lower standards instead.

Exactly. Well said

AND THEY SUE TRUMP FOR OVERVALUING HIS PROPERTY???

The rent is due for the building regardless if its got workers inside it or not.

@@John-xd9wr but companies renewing their leases are downsizing their rental needs because they don't need as many seats. Most commercial leases are 3 - 5 years so it was fine during the pandemic, but 3 years later companies have downsized (and continue to downsize) their office needs when their leases are up for renewal. They also have a lot of options now so not only are they downsizing their lease, but they're getting a better price per seat. Lower occupancy and lower prices means less rent, which means a much higher potential of defaulting on loan payments, which means souring investments for banks, hedge funds and private equity.

They wouldnt help us if we needed it. Why should we help them?

Obviously, jameslongstaff!

I am going to ride past the fact that you are late to the party, and instead acknowledge that you showed up at all. The 08 bailout just encouraged other risky investments.

You want to lose your life savings?

@@jimkelly4214 i dont have enebough to worry about

What if the failure would be detrimental to the standard of living of the people of the country

@irizvi1441 It's the peoples' fault for agreeing to loans they can't pay back. They can start a loan insurance company.

@@William0271😂😂😂 it’s crazy you think that, genuiney

@@Charlie-ly9kp Do you have no concept of reality? Right not loan insurance exists. That's what the federal government is doing, insuring garbage loans with our stolen tax dollars. Privatizing this would take the burden off of tax payers and put it squarely on the people and businesses being reckless.

The problem with that is these lenders also buy things like, your mortgage. So if they default on that, your payments go up in smoke.

He said that the governments gave money to people… they didn’t they gave money to the banks… it was never government debt it was always private bank debt

All caused by lockdowns we didn't really need to have!

Agreed.

Well, one can argue that the alternative would have been worse. But honestly: property owners losing money does not sound too disastrous to me.

A surprise? Big daddy of all crisis because of too low interest rates for too long has to popp yet, Japan China is not far behind

Billionares are just the tip of the iceberg, its midde class commoners that work for them helping too We are all in this not just one white woman making decisions in an ivory tower

Oh but see, the reason they did this is because they wanted to become more wealthy. So I'm sure now you're just full of empathy

Privatize the profits, socialize the losses.

The biggest equity holders and one of the biggest investors in the world are pension funds. That means common people that count on this money for their retirement. If these funds fail, people will have nothing to survive on their older years. The alternative to this, is public pension systems, where young people pay for the retirement of old people, which is basically a Ponzi scheme. This does not mean that the managers of these funds should not be held accountable for doing bad decissions with other peoples money.

And politicians.

What are you talking about

I too have autism

If the bank where you keep your savings fails, what do you think will happen to your savings? They like the banks will disappear.

not if you put your money in an FDIC insured bank @@QAYWSXEDCCXYDSAEWQ

​@QAYWSXEDCCXYDSAEWQ Should've bought gold. We really need to normalise this idea that wherever you put your money IS A RISK.

@@whatisrokosbasilisk80you think a totally useless pure metal that you ALSO dont have in-hand is going to help you if the world economy collapses? no, its not. What do you think the price of gold is based on? the fiat currency held by the banks

I Agree anybody would be a fool put all of their savings in a Bank anyways ​

It is a great movie though😂

It was never about us "Real People". I feel your pains.

@@redpilledwarrior4367 I know we're just numbers, social credit scores, or "eaters" to the 1%.

they will be occupied by foreigners

China has plenty of money... ...laundered in overseas real estate.

@@John_Narayan I know. Untold thousands of apartments, condominiums, and houses here in canada sit empty year-round so the сср has mailing addresses / "residency" here. Tax breaks, and more as well. Then there are all the empty "air bnb"s.

Real capitalism would let the banks or businesses fail. We have Crony capitalism.

Exactly. The younger generations are so selfish smh

Yeah and that's called anarchy, the market may as well decide that you aren't valuable and "do away" with you.

@@wotermelon_A self-regulating market is... "anarchy"...?

@@GenesisRip Yes

Not at all. Fed govt will step in during Biden's election year to make sure it doesn't fall apart.

@@wbay3848 Ikr! Look at all the homeless who cant afford basic needs and pass away due to exposure while camped outside one of these unoccupied skyscrapers. Or are we only talking about bankers here?

The crazy thing, is that people were buying up 'virtual property' for people to roam around in (sometime in the near future). The plan is to have us own nothing and be happy.

Tell me the difference because i dont know.

@@wbay3848 everyone who works at a private bank is "extremely rich"?

Its funny how so out of touch these guys are to make the notion that "the people" received the money. LOL.

He's not talking about bailouts; he's talking about extremely low interest rates. Granted, the Fed loans to banks, not individuals, but it does strongly affect the interest rates that individuals receive. (e.g. for mortgages)

But when you do that, the total rent for that building is no longer going to bring $100/Sq Foot as an apartment. In other words the value goes down and richie rich has to add collateral for the loan he took out 5 minutes after this building opened.

its USA the empire of corporations and the top 1%, cue your hopes.

you can hope away... in the end you will still have to pay.

Of course you'll pay. They're too big to fail.

It's going to be far worse

It will!

While the end result is the same, I don’t think it was overbuilding that killed the malls. Many of those that have failed were profitable for decades and have no nearby competitors, it’s online that killed them.

Right because they were never opening new malls to support the communities just to borrow money against the inflated value.

The people who used to do all that stuff are still here we just don't have any f****** money anymore because wealthy people have vacuumed it all up that's all that's actually happening.

They will fail. But next time they will receive a bail-in not a bail out. Basically the money from depositers will be taken

You’ll pay for it via taxes to bail out the banks if it happen. I know you probably think you’re been edgy but actually you’ll be badly affected even if you don’t own the asset that collapses

Absolutely agree. The worst thing that the government can do is to protect financial institutions from their own reckless lending. And Georgism is the best tax system.

BRAVO! I actually I just talk with someone in that situation. The management need to cover for their stupidity.

It’s difficult because the layout and plumbing isn’t set up for individual apartments (unless they were huge) it would take a lot of retrofitting

could all be used for implosion Samples… call Bush

Some, but it's not cheap. Unless you give pretty big subsidies to the developers, they cannot make it affordable housing. Or if the potential rent isn't high enough, they wouldn't be able to do conversions without taking a loss.

You have still got the problem what to do with these buildings. They still require huge maintenace.

The gov and the fed won't have the same tools (zero % interest rates) to simulate the economy like they did in 2008 due to our current inflationary environment. Inflation would run rampant and the fed would be backed up against a wall: either bail them out and risk hyperinflation or let them fail and have the second great depression.

We need to get back on the gold standard if you want people to stop taking out so much debt and abusing debt..

Modern economies are based on the premise of constant growth. How does one do that? They do it with debt.

@@brent4073 the gold standard is impossible to go back to. we have too much money in circulation for any of it to be back by gold.

Rich people wouldn’t suffer, the rest of us would suffer

The 1% is in alot of debt and trying to fear monger that the 99% of us will hurt... No if you're not in debt and have an income you'll be fine... But if you work for someone else and their in debt... Might not be working soon.

These companies are not coming back.

there is a shortage oh housing perhaps beacause only 2 people live on 4000 sq ft homes