Commercial Property Bubble Gets Out of Control

Commercial real estate is now up 102 percent from the lows reached in 2009.

from My Budget 360

We live in a system were bubbles grow and pop at an increasingly faster pace. This is largely due to massive market intervention by central banks and their masters with investment and commercial banks. The goal is to always create more liquidity if you are a bank. However there is no clean mechanism to filter liquidity into the appropriate areas of the economy so enormous waste occurs typically in the form of asset inflation. The bailouts were largely a “trust the banks” operation and here we are almost one decade since the Great Recession hit and we’ve basically made the middle class a minority in the United States. In the mean time banks are doing fantastic. One area where a bubble appears to be ongoing is in commercial real estate. Commercial real estate is going gangbusters even though the typical family is barely scraping by. So what gives?

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