American offices are half-empty. That could be the next big risk for banks. (CRE. )

"LondonCNN —

From Dallas and Minneapolis to New York and Los Angeles, offices sit vacant or underused, showing the staying power of the work-from-home era. But clear desks and quiet break rooms aren’t just a headache for bosses eager to gather teams in person."

"Investors and regulators, on high alert for signs of trouble in the financial system following recent bank failures, are now homing in on the downturn in the $20 trillion US commercial real estate market."

"America’s top banker, JPMorgan Chase (JPM) CEO Jamie Dimon, told CNN Thursday that he couldn’t be sure whether more banks will fail this year. Yet he was quick to point out that the current situation was very different to the 2008 global financial crisis, when there were “hundreds of institutions around the world with far too much leverage.”

"You have fundamentals under pressure from work from home at a time when lending is less available than [it has been] over the last decade,” said Rich Hill, head of real estate strategy at Cohen & Steers. “Those two factors will lead to a pretty significant decline in valuations.”

"Earlier this year, a landlord owned by asset manager PIMCO defaulted on nearly $2 billion in debt for seven office buildings in San Francisco, New York City, Boston and Jersey City."

"Signature Bank (SBNY) had the tenth biggest portfolio of commercial real estate loans in the United States at the start of the year, according to Trepp. First Republic (FRC), which received a $30 billion lifeline last month from JPMorgan Chase and other major banks, had the ninth largest."

"About $270 billion in commercial real estate loans held by banks will come due in 2023, according to Trepp. Roughly $80 billion, nearly a third, are on office properties."

"The worst outcome, according to Neil Shearing, chief economist at Capital Economics, is that a “doom loop” develops. Questions about the health of banks with sizable exposures to commercial real estate loans cause customers to pull deposits. That forces lenders to demand repayment — exacerbating the sector’s downturn and further damaging the banks’ financial position. That triggers more deposit outflows in a “vicious cycle.”

SOURCE:

https://www.google.com/amp/s/amp.cnn.com/cnn/2023/04/10/business/commercial-real-estate-banks-offices/index.html

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🔥 Gaza and the Grammar of Death: Achille Mbembe’s Necropolitics in the Age of Engineered Survival

By Malik Mukhtar (Full-Length Version with Mbembe Quotations) There are historical moments when the ordinary vocabulary of violence collapses . When “ conflict ,” “ occupation ,” and “ security ” no longer carry the weight required to explain what is unfolding before our eyes. Gaza is one such moment — a rupture in the moral architecture of the present. It is not simply a battlefield. It is an experiment in state-administered dying , in what Achille Mbembe named necropolitic s — the transformation of political power into the authority to dictate who may live and who must die. In Necropolitics (2003), Mbembe writes: “ The ultimate expression of sovereignty resides… in the power and the capacity to dictate who may live and who must die.” — Achille Mbembe, Necropolitics For Gaza, this is not theory. This is the daily grammar of existence. My book, Calculus of Survival: Necropolitics, Siege, and the Deionization of Life in Gaza , is situated squarely within this reality —...

The Leak That Broke the Mirror: Israel’s Moral Collapse at Sde Teiman

n R It was not the torture that shocked Israel. It was the fact that someone leaked it. Welcome to Sde Teiman — the desert detention camp that became a mirror to Israel’s moral decay, and to the world’s selective blindness. The Scene of the Crime The story begins, like most horror stories do these days, with a camera. On July 5, 2024, security footage inside the Sde Teiman military base caught what it was never meant to record: a Palestinian prisoner, blindfolded, bound, and dragged across the floor by Israeli soldiers. Moments later, the soldiers raised shields to block the camera — and behind that human wall, the real Israel revealed itself. When the shields dropped , the man lay broken: seven fractured ribs, a punctured lung, and a torn rectum so severe it required surgery and a colostomy. The anatomy of cruelty was complete. The Scandal That Wasn’t You would think such a crime would set off national outrage. But in Israel’s political universe , torture is an...

How to Oppose Annexation Without Actually Opposing It: The Trump Doctrine of Elegant Hypocrisy

The Art of Saying No While Handing Over the Keys: Trump’s De Facto Annexation Gift to Israel Ah yes — the era of “ principled diplomacy.” The Trump administration, that self-proclaimed guardian of “fairness” in the Middle East, will forever be remembered for its masterclass in political double-speak — a rare performance where the United States verbally opposed Israel’s annexation of the West Bank while physically laying down the red carpet for it. It’s like saying, “ Please, don’t steal the car,” while quietly tossing over the keys, disabling the alarm, and complimenting the thief’s driving skills. The Great Paradox — or Just the Great Performance? Let’s call it what it was: a paradox of diplomacy , or perhaps more accurately , a farce performed for global consumption . In words , the Trump administration urged restraint — telling Netanyahu that annexation should be “coordinated,” “negotiated,” and “timed wisely.” In reality , it was busy dismantling every legal and dip...

The World as Gaza: Necropolitics and the Calculus of Survival

“ The ultimate expression of sovereignty resides in the power and the capacity to dictate who may live and who must die.” — Achille Mbembe, “Necropolitics” There are philosophies that dissect history, and there are philosophies that bleed through it. Achille Mbembe’s Necropolitics belongs to the latter — it is not an academic exercise, but a diagnosis of the world’s moral decay. In his words, modern sovereignty is no longer about governing life — it is about managing death . It decides who is allowed to breathe, who must suffocate, and who will exist in the space between. Nowhere is this calculus of death more visible, more technologically refined, and more ethically bankrupt than in Palestine . The siege of Gaza has transformed necropolitics from theory into geography — a place where the architecture of control and the arithmetic of survival intersect. The Right to Kill, the Duty to Let Die In Necropolitics , Mbembe extends Foucault’s biopower — the power to “...

BRIDGEWATER'S FOUNDER, BILLIONAIRE INVESTOR RAY DALIO SAYS, US IS AT THE START OF THE DEBT CRISIS & WORSE TIME AHEAD FOR THE ECONOMY.

"In my opinion, ( Mr. Dalio says) we are at the beginning of a very classic late, big cycle debt crisis, when the supply-demand gap, when you are producing too much debt and have a shortage of buyers ," Dalio said during the Bloomberg Invest conference on Wednesday. "What's happening now, as we have to sell all this debt, do you have enough buyers ? " he said. " When I look at the supply-demand issue for that debt, there's a lot of debt, it has to be bought and has to have a high enough interest rate," the Bridgewater founder added." SOURCE: https://markets.businessinsider.com/news/stocks/ray-dalio-us-debt-crisis-economy-recession-outlook-borrowing-ceiling-2023-6

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