Georgia banks bracing for major hit

www.ajc.com...

It's just going to keep getting worse. No jobs. Businesses closing down. And more banks flopping. It'll never end, will it?

Around here businesses aren't even hiring much, if at all, for the holidays. Some are getting rid of people. Those empty buildings won't do anyone any good, except maybe squatters if people get desparate enough.

I haven't been up to Georgia in a few months so I cannot speak from experience but here in Florida the commercial decay is pretty bad.

We have two major shopping malls. One is about closed down and the other is full of empty stores.

I tried to get a kiosk at the mall that is about to be closed last Xmas.

They wanted 5k for 3 months (we are not talking about mall of American here it's a tiny mall in a town of 250k) for a damn cart plus 4% of the sales!

It seems their overpriced fees and policy's along with the economy ended up biting them in the rear.








[edit on 18-10-2009 by lucentenigma]

reply to post by Jessicamsa

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many of those small community banks are gonna be toast... that's the plan

i'd like to see the property management firms that operate those strip malls or else own these malls outright....go ahead and engage in some creative leasing. etc

If those REITS are losing tenants, therefore losing money (in rents) then they are the epitome of 'DUFAS' to not allow free clinics, food pantrys, humanitarian aid statuions and such, to operate in the empty spaces..
.& take tax breaks for 'giving' retail space to charities...


the banks & mall operators all earn the BIGGEST DOOFUS AWARD
if they don't use the economic downturn vacancies to their advantage


[edit on 18-10-2009 by St Udio]

reply to post by lucentenigma

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"Commercial decay" is not bad. It is the economy getting rid of businesses that do not utilize the resources of the economy wisely. They are not offering goods that consumers want to buy...so why should they stick around? (Also, this is why bailouts are bad...they do not allow the economy to correct it self by getting rid of these unproductive businesses). This is a time of investment....investment for businesses that know what consumers want. Once the economy corrects itself, it will be even more efficient. This is simple economics. Don't be silly and mislead others.

reply to post by Jessicamsa

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Their very wrong about relatively light exposure... small banks may not invest in a malls but the do invest in the small businesses that cater to large commercial ventures, like the cleaning services, local landscapers. the people who service the Heating and A/C systems.... All the folks who lose their jobs because another business went belly up, means those little banks wont be seeing their depositing pay checks into Christmas funds, savings accounts or making loan payments

Oh no they will take an even bigger hit than Goldman Sachs or CIT group... once that moneys gone there will be no bailouts for them

I'm not sure why people are always putting words in my mouth?

I was merely using the example of urban decay as an economic indicator.

The down side of your theory is the 'wal-mart' effect.

Box stores and super corporations will come down and fill 'the needs' of consumers with more crap and imported junk.

More money and power to the few and foreign entity's (look at the Waltons and China) while American small business owners and entrepreneurs get the shaft.

I think you should stop being silly and misleading others with your green shoots.

The only people I know that think the economy is 'back on track' are heavily medicated or are bankers swimming in taxpayers stimulus money.





[edit on 18-10-2009 by lucentenigma]