What is going to take place to our banking system as trillions of dollars worth of business property loans go bad? Many months earlier, I alerted that the greatest business property crisis in U.S. history was coming. At the time, a great deal of people didn’t believe me and that was fine. As with so many other things, all I required to do to be proven right was to wait. Unfortunately, a business property tsunami is now here, and it appears to be accelerating even faster than a number of the professionals had been anticipating. Just within the previous couple of weeks, there have been numerous more high profile defaults, and San Francisco has actually become the center of this crisis.
On Monday, we learned that Westfield has actually decided to purposely default on a 558 million dollar loan on the San Francisco Centre shopping mall …
Shopping center giant Westfield is walking away from its San Francisco Centre mall, ending up being the current significant company to leave the California city amid widespread criminal offense problems.
Westfield validated to FOX Service Monday that the company and partner Brookfield Properties earlier this month stopped paying on a $558 million loan protecting the San Francisco Centre residential or commercial property.
Do you keep in mind in 2008 when countless Americans that were undersea on their mortgages simply ignored them?
Well, now the exact same thing is taking place, other than that instead of houses we are talking about shopping center and office complex.
The San Francisco Centre mall was the most essential retail location in downtown San Francisco.
However sales have been decreasing for a long time, and similar to Park Hotels & Resorts, Westfield is determining quickly degrading conditions in the downtown location as one of the main reasons for leaving the city …
“Given the difficult operating conditions in downtown San Francisco, which have led to decreases in sales, occupancy and foot traffic, we have made the difficult decision to start the process to transfer management of the shopping center to our loan provider to enable them to appoint a receiver to operate the residential or commercial property going forward.”
Westfield’s relocation comes less than a week after Park Hotels & Resorts revealed it had handed two prominent hotels back to the bank. The realty investment trust stated it was abandoning the Hilton San Francisco Union Square and Parc 55, saying the city’s streets are risky and revealing doubts about the area’s capability to recover.
San Francisco was once such a stunning city.
But now among the most affluent cities in the entire world is being methodically changed into a hellhole, and it is all thanks to the “progressive” policies of the city’s leaders…
Westfield’s struggles will pile fresh pressure on city leaders, after several sellers and hotels shuttered in downtown San Francisco as it continues to battle skyrocketing criminal activity, open substance abuse and homelessness.
The notoriously progressive city has actually been condemned for its ‘damage reduction’ policies, which critics say have actually successfully legislated drug taking. On the other hand, its police department remains short-staffed after woke lawmakers called for defunding in the wake of George Floyd’s murder.
Even Twitter has decided to leave.
The business has not been paying rent on “Twitter head office” for months, and Elon Musk has confirmed that there is no strategy to ever restart payments …
Twitter stopped paying its lease in November, the report states, and CEO Elon Musk has actually said he doesn’t intend on restarting payments. Those payments would go to Columbia Home, a REIT that Goldman has lent $1.7 billion to, in a consortium with (of course) Deutsche Bank.
Unfortunately, this is only just the beginning.
As retailers and businesses leave the downtown areas of our major cities, a lot more defaults will inevitably happen.
In New York City City, the workplace occupancy rate was close to 100 percent before the pandemic.
Now it is hovering around 50 percent.
Of course this business real estate tsunami is not the only crisis that we are dealing with.
The domestic realty bubble has also started to burst, and sales have been falling all over the nation for months.
Higher rates of interest will continue to put downward pressure on home rates, and many experts are extremely worried that foreclosure filings have actually begun to rise…
May foreclosure-related filings, that include default notifications, set up auctions and bank repossessions, were up 7% from April and up 14% from a year back, to 35,196 properties, according to the realty information group ATTOM.
Meanwhile, large companies all over America continue to conduct mass layoffs.
As I talked about in a previous short article, the number of announced task cuts in the United States during the very first 5 months of this year was 315 percent higher than the variety of revealed job cuts throughout the exact same duration in 2015.
And we are being told that the variety of media market layoffs so far this year is the largest figure ever tape-recorded…
The media industryhas announced at least 17,436 job cuts so far this year, marking the highest year-to-date level of cuts on record, according to a new report from Challenger, Gray & Christmas.
Despite everything that I just showed you, many of the “experts” in the mainstream media continue to insist that the economy is in great shape.
I truthfully do not know how they can state that with a straight face.
However they are saying it.
Much like in 2008, they simply do not wish to believe what is occurring right in front of their eyes, and they aren’t thinking about ominous cautions about our long-term future either.
In the short-term, our economic problems are going to continue to intensify in the months ahead.
In the long-lasting, we are going to have a real headache on our hands.
But for now, millions upon countless Americans continue to rely on those that are telling them that brighter days are ahead, and so they are not doing anything to get ready for the terrific storm that is quickly approaching.
Michael’s brand-new book entitled “End Times” is now readily available in paperbackand for the Kindleon Amazon.com, and you can take a look at his brand-new Substack newsletter right here.
About the Author: My name is Michael and my brand name new book entitled”End Times” is now readily available on Amazon.com. In addition to my brand-new book I have composed six other books that are available on Amazon.comconsisting of “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Starting Of The End”, and “Living A Life That Actually Matters”. (#CommissionsEarned) When you purchase any of these books you help to support the work that I am doing, and one way that you can truly help is by sending copies as giftsto family and friends. Time is brief, and I require aid getting these cautions into the hands of as lots of people as possible. I have also begun a brand brand-new Substack newsletter, and I motivate you to subscribe so that you won’t miss any of my short articles. I have published countless articles on The Financial Collapse Blog, End Of The American Dreamand One Of The Most Essential News, and the posts that I release on those sites are republished on dozens of other popular sites all over the world. I constantly freely and gladly allow others to republish my posts on their own sites, however I also ask that they include this “About the Author” area with each article. The material consisted of in this article is for general details purposes only, and readers must speak with licensed professionals before making any legal, service, monetary or health decisions. I motivate you to follow me on social networks on Facebookand Twitter, and any method that you can share these short articles with others is definitely an excellent help. These are such distressed times, and individuals require hope. John 3:16 informs us about the hope that God has offered us through Jesus Christ: “For God so liked the world, that he provided his only begotten Son, that whosoever believeth in him should not die, however have long lasting life.” If you have not already done so, I highly urge you to invite Jesus Christ to be your Lord and Saviortoday.