For the last couple of months, I keep hearing that we are in a recession (or going in one). However, I must say that I’ve been very encouraged with the fact that I’m still seeing people spend money.
When I went to the mall for some christmas shopping, the food court was packed with customers, and toy stores were full. Now, I know retailer’s are expecting less profits than last year, but AT LEAST WE ARE STILL SPENDING.
I think, we as a country are just more wise at what we spend.
On the other hand, I was surprised to read in Sunday’s paper, that the same issues that affected residential housing foreclosures, are now affecting commercial properties, such as malls and retail outlets.
Malls are going into foreclosure because commerical properties are not done on the normal 30-year term that us residents are used to. Instead, they have a 10-year commitment, with the largest payments at the end.
There is an estimated $20 Billion (with a ‘B’) due next year in commercial property payouts.
I am so ticked off at our current Secretary of Treasurey, who should have seen this coming, and done something about it, before it got this bad. Way to go Paulson.
The Obama team might be able to pull us out of it, but we shouldn’t have gotten here in the first place.