Category Archives: Economy
What Brookfield’s Default Has to Do with You
This trip down memory lane was wandered with intent and purpose. Because this week Bloomberg reported that Brookfield Corporation, one of the largest commercial real estate companies in the world, has defaulted on $161.4 million of office building mortgages. Continue reading
The Creative Process of Government Destruction
According to Schumpeter, the depression stage is both useful and creative. It brings the economy into equilibrium through forced adjustments. The level setting during the depression then encourages new innovations that take shape in the next stage of recovery. This process, where new and innovative companies destroy the value of established companies, is what Schumpeter called creative destruction. Continue reading
Is the Bank Crisis Already Over?
Taking the path of least resistance eventually leads to disastrous places. Like the Alexandria Hotel in Los Angeles, circa 1990s, these are places that are best to be avoided. Still, some people, after consistently choosing the easier and softer way, ended up there, going mad, in their SRO unit. Continue reading
What Comes After the Great Liquidation
Expectations were great. When 2023 started, there was a general sense that the stock and bond markets had turned over a new leaf. A repeat of 2022 was out of the question. Continue reading
