A national commercial real estate crisis is picking up momentum with many landlords and banks facing historical financial losses. WeWork’s bankruptcy and Blackstone’s project by project defaults are adding hundreds of large commercial properties and many millions of square feet of office space to an already in-process crisis. Long term interest rates are expected to continue even higher as U.S. government long term bond auctions now reflect many traditionally large buyers walking away (and actually becoming sellers). The most recent 30-year Treasury bond auction required the Primary Dealers to buy and hold almost 25% of the securities auctioned (a deeply negative result on a long-term historical basis).

Link to Financial Times article on commercial real estate: https://www.ft.com/content/7518fea2-b2f2-4cad-8b58-c524764614cd

Link to University of Michigan consumer sentiment:

https://www.reuters.com/markets/us/consumer-sentiment-drops-again-november-inflation-expectations-climb-2023-11-10/