Another Bailout Recipient?

Since the government started with giving out money like candy on Halloween we have seen hands outstretched for TARP money like never before. I guess $700 billion with little to no strings attached will get everyone's attention. Well the docket now stands with recipients & those that want it: Banks, Investment Banks, Insurers, Automakers, the Detroit Lions, and now we can add Commercial Real Estate Developers/Investors. The Wall Street Journal reports, Developers Ask U.S. for Bailout as Massive Debt Looms

"With a record amount of commercial real-estate debt coming due, some of the country's biggest property developers have become the latest to go hat-in-hand to the government for assistance.

They're warning policymakers that thousands of office complexes, hotels, shopping centers and other commercial buildings are headed into defaults, foreclosures and bankruptcies. The reason: according to research firm Foresight Analytics LCC, $530 billion of commercial mortgages will be coming due for refinancing in the next three years -- with about $160 billion maturing in the next year. Credit, meanwhile, is practically nonexistent and cash flows from commercial property are siphoning off."

Hmm lets see here Mr. Commercial Real Estate Developer, you over expanded into a peaking property market with a ton of leverage to boot? Okay... And now since credit isn't easy to come by you must ask for a handout from the Federal Government? I wonder why it is going to be difficult to refinance the debt. I am sure it has nothing to do with the fact a normal sane investor wouldn't put their hard earned coin on funding your failed operation. So naturally one must look to the public tax payer to bail them out of this piss-poor investment. Unbelievable folks.

source: wsj.com