Saturday, April 25, 2009

What a Mess

Well, as I wrote on Christmas Eve, the only thing keeping Sportsman's Warehouse going was the interest of a Canadian co-op, and the moment UFA Co-operative pulled the plug on that deal, it was off to bankruptcy court.  And as I predicted in that same Christmas Eve sermon and again on 14 January, General Growth Properties has likewise dived into bankruptcy court, leaving a wasteland in Cottonwood Heights (including killing off the TGI Friday's there) and stiffing the Fashion Place contractors for several million (If the contractors were smart, they'd form a consortium, foreclose all their mechanics liens together, do a workout with the prime lenders, and take over.  It's now the only east side regional mall between South Towne and downtown and looks to stay that way awhile.).  Commercial real estate loan defaults have quadrupled since last year as vacancies in all types of commercial space keep rising.  And, oh yes, home sales are down too, in spite of blandishments to the contrary from Realtors.  Exactly where is that bottom we're supposed to have reached already?

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