Success means being able to choose who you work with.
Only about half of retail is under attack from e-commerce, but that half is getting crushed.
The CEO is selling that $20 billion valuation to a lot of smart, rich guys. But WeWork’s entities are known as SPE’s (“Screwing Probably Expected”), and landlords will be the first to go down.
This is the brick & mortar part of e-commerce.
Chicago rents collapse, New York’s swoon, Southern California’s boom. And the US average hides all the drama on the ground.
When is it gonna pop?
Bonds, junk bonds, spreads, commercial real estate, leveraged loans, over-leveraged companies… all get named as risks to the banks. This is why “gradual” tightening will continue for a long time.
Retailers in bankruptcy are notoriously hard to restructure.
Leverage is why the Fed has been worried about the price bubble in CRE.
One mega-deal at a mega price. The rest was dreary.