Blockchain NewsCryptocurrency NewsGlobal Crypto NewsLatest News

Commercial Real Estate and US Financial System Future Addressed

It’s been revealed the fact that commercial real estate and the US financial system are currently addressed. Check out the latest reports about this below.

Financial markets are addressed in latest reports

Buy Property with Cryptocurrency

A weakening commercial real estate sector could be a canary in the coal mine for the US financial system at large, according to economist Peter St Onge.

In a new video update, the analyst says growth in major urban areas of the US appears to be declining. This could potentially wipe out some of real estate firms that are leveraged up and indebted to regional banks.

St Onge says US banks will have to pay dearly for the decline of the American city if interest demand for prime urban real estate cools off.

“We are now seeing a mass extinction [of badly run companies and real estate projects] now that money is very much not free, thanks to the Fed rate hikes. In fact the prime rate – that’s the interest rate offered to the very best companies – is currently running at 8.25%. That is up from 3.25% for most of the past 15 years. However, we have an economy that has grown into cheap money and that cheap money is over.”

The same notes continue and reveal the following:

“All with the added bonus that many of America’s cities – so 85% Americans live in cities or suburbs – are so badly run between crime, quality of life, and regulatory and tax harassment, that companies are either fleeing or they are closing up shop altogether. All of this while post COVID remote work means millions of workers also no longer need to suffer the newly miserable cities so they too are fleeing.”

We suggest that you check out the original article in order to learn more details about the matter. Stay tuned for more crypto news.

Send this to a friend