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News Link • Federal Reserve

The Covert Bailout of The Commercial Real Estate Industry By The Fed

Yet with the crash in all real estate values, banks were left holding a smoldering portfolio of empty shopping malls, luxury hotels, and in some cases fast food outlets. Today CRE values are estimated to be at $3 to $3.5 trillion putting many loans in a negative equity position reminiscent of many individual homeowners. This issue of bailing out CRE was never discussed openly with the American people because it would have never carried any political muster. So what the Federal Reserve accomplished was to create a system where banks were able to exchange toxic loans in place of U.S. Treasuries without taking up an open dialogue with the public. In other words a clandestine bailout. The problem with bailing out the commercial real estate industry is that it shifts costs from businesses and more crucially big banks to working and middle class Americans. The value of money that Americans now carry is becoming worth less each day with these continued actions. Do Americans make the direct connection? I think the Federal Reserve is making the bet that most will not understand this convoluted connection and simply go on with their daily lives blaming whatever other topic of the day is filtering in the financial press. Without a question however the Fed is making Americans poorer. The values of CRE have fallen dramatically and if we look at the current chart of their values, we see that they are making no immediate comeback:

2 Comments in Response to

Comment by Olde Reb
Entered on:

Perhaps the mathematical analysis of the Ponzi scheme Federal Reserve that reveals how the FRBNY received $8.4 TRILLION from the auctions of Treasury securities last year and hid the entire amount from Congress posted at  may be of interest.
Comment by Ed Price
Entered on:

If you ever want to understand about the economics of America and the world, you need to get ONE foundational mindset into your head. That one foundational mindset is this:

ALL money is really labor of people.

In all your thinking and calculating of money, get rid of the idea of Dollars, or Euros, or Rubles, or Pesos, or whatever, and replace them all with ONE thing... THE LABOR OF THE PEOPLE.

Once you do this, you will start to understand how money works, and how the world bankers are using it to dominate everybody.

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