It seems like only yesterday that I was posting links to the financial crisis legislation of 2008-9. Here we go again.
So far, we’ve had three bills to deal with the coronavirus epidemic and its economic consequences:
- HR 7048, the “Coronavirus Aid, Relief, and Economic Security Act” (a/k/a the “CARES Act”), March 27, 2020. Wikipedia summary, full text PDF.
- HR 6201, the “Families First Coronavirus Response Act,” March 18, 2020. Wikipedia summary, full text PDF.
- HR 6074, the “Coronavirus Preparedness and Response Supplemental Appropriations Act,” March 3, 2020. Wikipedia summary, full text PDF.
Careful printing the CARES Act—it’s over 300 pages.
And then there were four:
- HR 266, the “Paycheck Protection Program and Health Care Enhancement Act,” April 24, 2020, full text PDF.
- HR 7010, the “Paycheck Protection Program Flexibility Act,” June 5, 2020, full text PDF.
Commercial banks reported a delinquency rate of 5.28% on commercial real estate loans as of June 30, 2012. The rate has dropped by more than half from a peak of 10.76% in 2010.
The delinquency rate for Arizona is 3.47%.
—SNL: Data Dispatch: CRE delinquencies continue to plummet
Great observation from economist Robert Shiller:
Economists who adhere to rational-expectations models of the world will never admit it, but a lot of what happens in markets is driven by pure stupidity—or, rather, inattention, misinformation about fundamentals, and an exaggerated focus on currently circulating stories.
Debt and Delusion – Project Syndicate.
Recent trends are mixed. Values and sales bottomed in 2009 (charts 1 and 3 below), but vacancies are high (chart 2) and commercial mortgage-backed securities lending, while improving, is still weak (chart 4). “Extend and pretend” is the order of the day at commercial banks, which are digesting $80 billion of losses on commercial real estate loans, and the real challenge is still ahead: $1.6 trillion of commercial real estate loans are coming due in the next eight years.
See Commercial real estate coming back, but unevenly – WSJ.com.