There going to bail out commerical real estate

[Anonymous No.55688181]

I am in complete and utter disbelief
What the fuck is "muh economics muh free market captalism"

>https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230629a.htm

[Anonymous No.55688203]

>>55688181
>50%+ taxes
>20% inflation
>82948297489732897489 regulations
>central banking

>free market capitalism

[Anonymous No.55688275]

>>55688203
I get it...
I'm just in shock. I can't even process what I'm reading right now.

Whats worse I guarantee you this will be done and no one will bat an eye.

People care more about the fact that theirs just one flavor of banana than how everyone short of the mega wealthy are being raked over the coals.

[Anonymous No.55688285]

>>55688203
Communists will cry about us being in capitalism despite everything having taxes and markets having subsidies and bail outs existing then claim communism has never been tried.

[Anonymous No.55688376]

Do you seriously believe the FED will remain inactive as the very foundation of our economy crumbles? It's almost as if you might be someone with affiliations to Russia or China, actively working against American interests.

[Anonymous No.55688419]

>>55688376
Your so fucking stupid its retarded.
& i don't even know what your trying to say>>55688285

[Anonymous No.55688557]

>>55688181
>https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230629a.htm
this comes as a surprise to absolutely no one
instead of seething over it you should have positioned yourself to profit of it
dont tell me you fell for the biggest crash in your lifetime in just 2 more weeks grift
the fate of the normies has never and shall never concern us nor the people that make the actual decisions

[Anonymous No.55688574]

>>55688181
also for added jilarious effect check out the index that tracks smaller regional banks aka the bagholders of this shit
this bailout info was known to insiders and they played it beautifully

[Anonymous No.55688588]

>>55688181
So basically socialism. Its everywhere now, states will own everything.

[Anonymous No.55688781]

>>55688588
How does USA even afford all this shot, while being 32 trillions in the hole?

[Anonymous No.55688819]

>>55688781
They're in debt for USD, which they can print so it matters less than nations who can't print USD (who also owe debt in USD)
>>55688419
Maybe learn words before using them if you don't understand what they mean. We aren't in "real" capitalism as long as there's anything I mentioned.

[Anonymous No.55688825]

>>55688181
Can someone summarize the document for brainlets? My takeaway is that the FED is demanding that banks not collect on commercial real estate debt. Is my understanding incorrect?
>working constructively with commercial real estate (CRE) borrowers who are experiencing financial difficulty.

[Anonymous No.55688861]

>>55688181
Join the revolution anon it you haven’t yet.

[Anonymous No.55688950]

>>55688825
Okay, no. I asked a bot to read the document more thoroughly and provide an example scenario. What's really going on is this as an example:
>Suppose a commercial real estate (CRE) borrower has a loan for a shopping mall. Due to unforeseen circumstances such as a downturn in the economy or a pandemic, the mall's tenants are unable to pay their rents, leading to a significant decrease in the mall's operating cash flows. As a result, the borrower is unable to meet their loan repayment obligations.
>In a typical scenario, the financial institution might choose to restructure the loan to help the borrower. This could involve actions such as extending the loan term, reducing the interest rate, or even deferring payments for a certain period. However, such restructuring could lead to the loan being classified as a "troubled debt restructuring" (TDR), which can have regulatory implications. For instance, TDRs often require increased loan loss reserves, which can impact the financial institution's profitability and capital ratios. This could potentially lead to regulatory penalties or increased scrutiny from regulatory bodies.
>However, under the guidance provided in this document, if the financial institution performs a comprehensive review of the borrower's financial condition and determines that the borrower is still creditworthy (i.e., they have the willingness and ability to repay the debt under the restructured terms), the institution can proceed with the loan restructuring without fear of regulatory criticism or penalties. The restructured loan will not be subject to adverse classification solely because the value of the underlying collateral (the shopping mall, in this case) has declined to an amount less than the outstanding loan balance.
>This guidance encourages financial institutions to work constructively with borrowers experiencing financial difficulties, without the fear of regulatory penalties, as long as the restructuring is done prudently.

[Anonymous No.55688984]

>>55688181
>The statement includes a section on short-term loan accommodations that was not included in the previous guidance. An accommodation includes an agreement to defer one or more payments, make a partial payment, or provide other assistance or relief to a borrower who is experiencing a financial challenge. Additionally, the statement addresses recent accounting changes for estimating loan losses and provides examples of how to classify and account for loans affected by workout activity.

fucking kek. remember when homer"""owners""" were losing their shit because jew banks wouldn't defer residential mortgage payments during COIVD shutdowns?

[Anonymous No.55689067]

>>55688285
communists existing is a good thing, it gives man a target to mercilessly murder with zero negative impact on their soul in gods eyes.

[Anonymous No.55689094]

>>55688181
>>55688275
It's 90 pages long. What's shocking in particular?

[Anonymous No.55689162]

>>55688950
So "look, guys, just try to restructure the loans somehow"?

[Anonymous No.55689179]

>>55688825
>>55689094

They are using some of what was done in 2009. Essentially preventing commercial real estate from defaulting.

You basically get to have your loan changed

A) extend the time for repayment
B) reduce the interest rate, down to 0 in some cases
C) forgive parts of the loan
D) get an entirely new loan that works for you

[Anonymous No.55689237]

>>55689179
The ultimate issue with this seems to be sweeping the inherent risk of the underwater commercial real-estate asset under the rug.

[Anonymous No.55689265]

>>55689162
>>55689094
It reinforces the idea that debt maxxing is a legitimate and sound strategy because you literally can't fail.
>Debt your way into wealth.

A hand out will be always be given.

[Anonymous No.55689268]

>>55688181
And?

[Anonymous No.55689272]

>>55689237
Yes, and now who exactly is paying for all of this? Jeff Bezos?

[Anonymous No.55689288]

>>55689272
At the moment, the banking industry appears to be paying for it. They'll find a way to shift costs somewhere else in time.

[Anonymous No.55689295]

>>55689288
they're already working on it. why do you think there's a (((concerted effort))) to (((return to the office)))?

[Anonymous No.55689336]

>>55689295
Yeah, that's likely part of the plan.

[Anonymous No.55689423]

>>55689265
Figures, really. The fair value of a large portion of these office buildings is below zero, since they not just stand empty, but also take up land in the middle of the city. Telling people to de facto write off the loans like back in the Asian financial crisis is the best they could do in a situation like this.

[Anonymous No.55689677]

If anyone in crypto is smart, they'd understand the rules of the game has been set and they literally cannot fail

[Anonymous No.55689720]

>>55689179
price discovery has been banned.