Lifted entirely from Eschaton today:
I don’t know enough to really know, but I do worry about the dominos falling…
- Capmark Financial Group Inc., one of the nation’s largest commercial-real-estate lenders, plans to file for bankruptcy as soon as this weekend, a person familiar with the situation said.
The much-expected move underscores the deep problems in the business-property market. After suffering from the collapse in residential mortgages, U.S. banks face steep losses from commercial real-estate loans. Capmark has originated more than $10 billion in commercial real-estate loans, according to Moody’s Investors Service.
This was part of GMAC.
You can have wealth concentrated in the hands of a few, or democracy. But you cannot have both.
Whatever Works 
Maybe they need a ‘bailout’ …
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Well, they part of GMAC and that’s part of GM, so . . . ouch.
We’ve been seeing warning flags go up all year about how commercial real estate is going to be the second shoe. Let us keep our fingers crossed. I don’t think there are likely to be any more bailouts. (Although I think we could use more stimulus – to the States especially).
An example is my local library system; they dropped hours from 68/week to 51/week, cut staff by 1/4 and have seen the demand for their services up by 30 to 40 percent. It’s the citizenry who need and use libraries, so it’s a good example of how money needs to be pumped in at the local level.
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