But Doc the Patient is Recovering

At least the Fed thinks thinks are getting better.  Our recovery on the commercial side, my view, is 3 years out and as my friend Mike Cantwell with Johnson Capital said Tuesday, it is “nuclear winter” for the CRE finance industry.  But the stay in the fallout shelter WILL end.  Here’s what the FED said, courtesy the Financial Times: “Fed More Upbeat: The Federal Reserve released the minutes of its August 11-12 Open Market Committee meeting Wednesday. The Times said the central bank’s outlook on the economy “brightened in August, as policy makers said they had grown more confident that the downturn was ending and that the economy would begin growing in the second half of the year.” Still, the minutes “showed that board members were not expecting a robust recovery.” The FT said the minutes revealed “much anxiety about the U.S. labor market.” The meeting’s participants “felt more confident that the recession was ending,” but “pointed to long-term unemployment, shrinking hours and decelerating wages as sings of a lot of ‘slack’ still in the labor market.” The Post said officials are increasingly confident a recovery is in the offing “but they are less sure about what the recovery will look like.” The Journal said the minutes “suggested that while Fed officials see the economy pulling out of its deep downturn — with some stabilization in financial markets, consumer spending and housing — they are unlikely to raise interest rates anytime soon.

About Timothy E Thomas

Senior business development officer, CENNTENNIAL LENDING, metro Denver. Responsible for SBA 504 production and conventional small balance commercial lending. Centennial is a credit union service organization owned by 13 credit unions in Colorado and Wyoming. Former SBA-USDA desk manager and Registered Representative for Isaak Bond Investments, Inc., a municipal broker dealer and market maker in SBA and USDA guaranteed loans and pools; taxable and tax exempt municipal bonds and agency securities serving institutional investors for over 33 years, member SIPC, FINRA.
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