One of the few unfounded conspiracy theories I believe is that there is some kind of unofficial, concerted effort from Western oligarchs to use RTO to bolster commercial office space valuations and prevent a banking crisis.
The problem is, I think the conviction to do this is relatively weak. They’re fine to do it with existing leased or bought office space because it’s mostly a sunk cost and just a matter of prodding their workers into compliance (in an employers’ market, thanks Fed), but most aren’t really willing to scoop these 60-70% discounted empty office spaces off the market. So we may end up with a banking crisis anyway, as word on the street is these huge losses in valuation threaten to blow up a lot of regional banks.
> One of the few unfounded conspiracy theories I believe is that there is some kind of unofficial, concerted effort from Western oligarchs to use RTO to bolster commercial office space valuations and prevent a banking crisis.
Hard to say if it's true and to what degree but these guys need to adapt. There is enormous demand for more buildings - but they do not necessarily have to be offices. Most funds prefer commercial real estate because it's easier to deal with but I don't think they have any chance against the market, they will have to adapt.
It's not just going to be us regionals, unless we pretend that none of the commercial paper is being used as acceptable collateral at central clearing houses, bilateral or tri-party swaps globably.
Global central bank balance sheets since 2008 already tells the direction that it, when an crisis eventually unfolds, will go...
Heaven forbid any of these workers in these contested rto corps have exposure to non central/private bank monetary systems... going to make that "war" more complicated for them...
The problem is, I think the conviction to do this is relatively weak. They’re fine to do it with existing leased or bought office space because it’s mostly a sunk cost and just a matter of prodding their workers into compliance (in an employers’ market, thanks Fed), but most aren’t really willing to scoop these 60-70% discounted empty office spaces off the market. So we may end up with a banking crisis anyway, as word on the street is these huge losses in valuation threaten to blow up a lot of regional banks.