. . . . [W]e are still left with the problem of the sheer tonnage of what I do not know about commercial property, except that after being overpriced for years, commercial property is said to be in a tailspin, which I assume is because people aren't buying things with that legendary American "abandon and stupidity to excess" because they finally, after bingeing for years on accumulating debt, continual government deficit-spending and the Federal Reserve creating more and more money to finance the whole deal, now owe So Freaking Much (SFM) that they can't make ends meet, and are in no mood to spend more borrowed money, meaning that businesses are closing up shop for lack of customers, leaving the commercial property owner left with bittersweet memories, a few bad checks and more vacancies.May 1, 2010 - "Trickle of Nonsense"
Daughty's latest column expresses concern that investors are buying securities backed by commercial mortgages to such an increased extent that yields have fallen. The mortgages can be only as safe an investment as the underlying commercial real estate.