A Must Read: The Crash Of ‘09 - The Collapse Of ‘10

[DetroitDad]

Will the rest of the U.S. end up like Detroit?

http://pakalert.wordpress.com/2009/0...ollapse-of-10/

However, this is only the aperitif. Wait for the crash of US commercial real estate, which analysts think happen by autumn this year. Shops are closing down and there’s no one to rent them. Companies are retrenching and freeing up a lot of office space or closing down entirely and vacating even more precious office space with no one to rent it again. Huge skyscrapers are becoming ghost-scrapers. All this expensive commercial real estate is mortgaged to the hilt. With no rental income coming in, the loans against them will become difficult to service and there will be fearsome default. There’s insurance and re-insurance here also and the amounts involved are mind-boggling. No bailout plan would come even close to coping. When the commercial real estate collapse comes, all hell will break loose. And if multinationals like General Motors and Ford call it a day, it won’t just be thousands upon thousands of people unemployed [[though its heartless to use the word ‘just’ here). Two entire towns will be become ghost towns. That’s terrible. If you count the number of people ~ wives, children and parents ~ who are dependent on those incomes, it becomes worse than terrible. It becomes absolutely and totally unconscionable, while corrupt and greedy bankers and the likes of Bernie Madoff have made off with billions ~ perhaps trillions ~ of dollars and are still doing so because “our contracts say so.”

The article also discusses the U.S. breaking up. Putting all this into perspective, Detroit was once a super power of the U.S., and when it hit hard enough times, it broke up via suburbs. This is something that has happened in the U.S. before. What we saw in Detroit and New Orleans was a breakdown in order. Is it reasonable to think the rest of the country will follow suit?