111–120 of 278 posts
Landlords can and do go after the person after the bankrupt LLC is raided.
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technically this will allow "working people" to continue having their jobs, otherwise the retailers will have to fire anyone and go out of business.
Right. Because trickle-down economics have always proven so great for the working class.
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Everyone still wants to live in cities. Firms want to settle in cities. If shops close, it wont change much.
You could see commercial real-estate be converted to residential.
Going more "dorm" style could work for low end if there wasn't a pandemic and even then it would carry plenty of risks that would scare people away from such an arrangement let alone the consumer desires.
Man, with (currently) four comments mentioning that this is "what bankruptcy is for", I think the point of the article might have been missed. This isn't some sneaky "one weird trick", and that's not the reason Bloomberg is reporting on it. In fact, the tone of the article to me is, "yup, companies do it all the time, but..." And the "but" is: But the moves threaten to upend huge swaths of the real estate market and…
Described in this: https://www.theatlantic.com/magazine/archive/2020/07/coronav...
The Dodd-Frank act capital requirements seems like they'll protect banks a bit, but to an outside layman like me it does seem like the CLO risk is similar in structure to CDOs.
What am I missing?
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I think I've seen it stated that property developers and property-management companies are often heavily leveraged, such that they can't lower rents; in about the same way that a VC firm with a ten-year investment time horizon on their fund can't invest in your startup if all your valuation-growth will come only after 11 years. In both cases, the lenders and shareholders of the firm, have contractually obligated the…
>So the firm itself is destined to either return the predicted profit, or die, with no middle road. Nah, the third option is bailouts, and they are not wrong for having high confidence in getting bailouts.
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>But the moves threaten to upend huge swaths of the real estate market and the half-trillion dollar market for commercial mortgage-backed securities. I wouldn't worry about that. I fully expect the federal reserve to "fix" this by buying the toxic assets with printed money.
If capitalism is to be the law of the land, why not let the rich lose everything? I guess they can easily live on the streets.
I wonder how Apple will respond if malls start collapsing. (I’ve heard rumor that) they pay just pennies on the dollar for their store leases because they draw so much foot traffic to the malls. I can’t imagine them keeping stores open in the middle of a nearly empty mall, but I’ve only ever seen pictures of an Apple store that wasn’t in a mall or strip mall.
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>ghost towns ...if rents don't fall. And maybe they should.
I think I've seen it stated that property developers and property-management companies are often heavily leveraged, such that they can't lower rents; in about the same way that a VC firm with a ten-year investment time horizon on their fund can't invest in your startup if all your valuation-growth will come only after 11 years. In both cases, the lenders and shareholders of the firm, have contractually obligated the…
Man, with (currently) four comments mentioning that this is "what bankruptcy is for", I think the point of the article might have been missed. This isn't some sneaky "one weird trick", and that's not the reason Bloomberg is reporting on it. In fact, the tone of the article to me is, "yup, companies do it all the time, but..." And the "but" is: But the moves threaten to upend huge swaths of the real estate market and…
On the other hand: what would they go do about it then? It the business fails it fails. It's not like you can pretend it is not failing and have them pay rent with their non-existent money.
[0]: https://www.boredpanda.com/americas-oldest-shopping-mall-mic...
[1]: https://www.bloomberg.com/news/articles/2020-06-30/a-case-fo...
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FWIW, Franklin/Philadelphia Mills, Neshaminy, Moorestown, Plymouth Meeting, Cherry Hill & Deptford malls are all still open & have some overlap with shoppers in KOP's area. There's nothing wrong with not knowing a lot of malls, but come on, you have to qualify your statement a little bit, because your comment doesn't make sense to me as someone who can drive to KOP and at least a half dozen of the other malls I've be…
I should have qualified that KOP was the largest mall I knew of which is why I called it out. I did forget about Springfield mall which is still alive I assume. https://en.wikipedia.org/wiki/Promenade_at_Granite_Run is turning into a classic shopping center which was my closest mall growing up. In Pittsburgh https://en.wikipedia.org/wiki/Century_III_Mall is getting turn down, Ross Park Mall is declining and Robinson…