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Signs of things to come for Tokyo - Morgan Stanly walks away from 3.3 billion commercial buildings.

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posted on Apr, 16 2011 @ 02:59 PM
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news.yahoo.com...


A Morgan Stanley property fund failed to make $3.3 billion in debt payments by a deadline on Friday, handing over the keys to a central Tokyo office building to Blackstone (BX.N) and other investors, the largest repayment failure of its kind in Japan.


We'll have to see how many more people drop their investments in Tokyo... this really is a sign of things to come with the reality of what Tokyo is facing. It's sad to see happen but it's inevitable with the amounts of radiation being released that Japan is slowly becoming unattractive to investors and property holders.




posted on Apr, 16 2011 @ 03:11 PM
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Doing more research into this to see if more companies are following suit, it does look like there has been quite the bursting property bubble in Japan, add to this devaluing property from an economic perspective, it's clear that the crisis in Japan is going to deflate the value that these investors are holding.

cachef.ft.com...

To not confuse with current event, this took place in Sept 2010

Goldman Sachs has given up ownership of one of its most high-profile investments in Japan – the Tiffany Building in Tokyo’s Ginza neighbourhood – in a move that highlights the problems facing many foreign investors who acquired real estate in Japan before the global financial crisis.



edit on 16-4-2011 by YouAreDreaming because: (no reason given)



posted on Apr, 16 2011 @ 03:14 PM
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reply to post by YouAreDreaming
 


Tough to say if this latest move was a continuation of the Global Depression or related more to the nuclear disaster, really. I would expect that Fukushima has likely just exacerbated already existing economic weaknesses and issues, making corporations' decisions to bail n investments in Tokyo easier to make.



posted on Apr, 16 2011 @ 03:20 PM
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Originally posted by burdman30ott6
reply to post by YouAreDreaming
 


Tough to say if this latest move was a continuation of the Global Depression or related more to the nuclear disaster, really. I would expect that Fukushima has likely just exacerbated already existing economic weaknesses and issues, making corporations' decisions to bail n investments in Tokyo easier to make.


This is what I am also thinking, that these massive companies will take advantage to drop bad investments using the crisis unfolding in Japan to marginalize their existing losses. It's a combination of both the economic state and the crisis that opens a door for this type of abandonment.

Will be interesting to see how this evolves in the future. I certainly expect more to follow as this may set a new trend. If Morgan Stanley did it, who else is taking notes?



posted on Apr, 16 2011 @ 03:23 PM
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i doubt many health insurance companys want to cover people working in Tokyo ..
and i am sure there was a great deal of effort on the part of the people at that location wanting to get the hell out as well it would be hard to sleep knowing you are surrounded by all that radiation and who knows if that reactor might go full on explode mode..

its a kick in the face but not really. japan is not going to be a very nice place to live much longer i am afraid



posted on Apr, 16 2011 @ 03:28 PM
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I'm a bit of a nebbish when it comes to finance, but won't Japan have to call in its debt-marker to the U.S.?

Won't that just hurt us even more in the long run?



posted on Apr, 16 2011 @ 06:04 PM
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Originally posted by beezzer
I'm a bit of a nebbish when it comes to finance, but won't Japan have to call in its debt-marker to the U.S.?

Won't that just hurt us even more in the long run?


The cover-up on Fukushima is to protect the economy from collapsing but moves like this show the instability that is evident. Japan is going to crash economically eventually as more data is uncovered with regard to the magnitude of radiation leaking from the reactors.

The US is already financially collapsing with the dollar and it's very likely that the global economy will be hurt.



posted on Apr, 16 2011 @ 06:32 PM
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Holy shirt.......Did I read the article correctly?
3.2 Billion for one building?
I believe that Japan never did recover from their economic downfall many years ago.
I think it is a combination of the almost world wide financial distress and greedy pricks.
Could the current crisis in Japan be a player in this.....I don't know but If I held property around this mess I would sure be paying attention to the situation for sure.
Right now our biggest concern is our electric bill.........Our investments don't quite extend to Japan just yet.
I am not making light of this as we are watching the radiation level counts here in North America and yes we are concerned.
To the OP S&F
Regards, Iwinder



posted on Apr, 16 2011 @ 07:43 PM
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Interesting article, thanks OP.


The article almost makes it seem like Morgan Stanley dropped its investments due to financial difficulties of its own, rather than as a referendum on the future of Tokyo...I don't know to what extent this might be true. It could easily be a combination of factors. Note also they are ceeding the building to the Blackstone Group, NOT to a Japanese company. Even if MS no longer believes in Tokyo, it appears that Blackstone does, at least for the moment.

Word on the street here in Tokyo is that there has been another round of panic rippling through the already-vastly-diminished foreign corporate presence in the city. The first wave left immediately after the quake; now I am hearing talk that a number of even the hardcore remainders have decided to leave within the last few days, over fears of radiation. On the other hand, some have reitererated their committment to stay, though, so it is far from a universal pattern. I heard not long ago that Goldman Sachs said it would fire any personnel abandoning their posts in Tokyo, but I don't know if the order still stands, if indeed it ever did.


edit on 4/16/11 by silent thunder because: (no reason given)



posted on Apr, 17 2011 @ 01:27 AM
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I think it would be paramount to get out of there if you want to be reasonably certain pf normal offspring.

On the other hand, a sixty five yr old who may get cancer 29 yrs from now from it may not care to go just yet.
On the whole i would say there will be more leavers than sayers by three to one.
There is no end in sight for the radiation ;leaking out of fukishima.
How they Japanese goverment intends to deal with the radiation sicknesses i am not really sure.
They have been consistantly underplaying thins to the point of being careless with the poeples lives and well being.
I know what devastation they still face from the damage of the quake, but thats no excuse for being too proud to ask for help.



posted on Apr, 17 2011 @ 01:36 AM
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So, Japan should just take Morgan Stanley to court.

Pay up - if a normal joe doesn't pay, you can be sure you will be taken to court. The same should apply to these scumbags.


Just goes to show how corrupt the system is.



posted on Apr, 17 2011 @ 03:40 AM
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reply to post by MidnightTide
 


I think its more along the lines as 'oh we cant pay so here you can have this building' it seems like they have just defaulted on it like if you cant pay for your house it gets repossessed by the bank. Because there is no point paying for something that if the radiation gets any worse is worth nothing, just cutting there losses.



posted on Apr, 17 2011 @ 03:51 AM
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reply to post by YouAreDreaming
 


Don't say I did'nt warn you (especially the Americans) come October-November this year.......

The USA is in far deeper crap than you realise

As for the Australians who jump on to this thread.....watch closely; our dollar will go beyond $1.10 against the greenback by June/July of this year.

The USD$ will become even more worthless than the NZD$ by year's end.



posted on Apr, 17 2011 @ 04:01 AM
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reply to post by YouAreDreaming
 


Really man? The news report says they simply over-extended and with the economic crisis are in serious financial trouble. Why do you people have to turn this into something it's not and overlook the obvious.

Do you honestly think it's not possible for them to be short of money and not able to repay their debt so they lose property because of it?

Crazy



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