From ZeroHedge, here is a tantalizing story … behind a pay wall. However right here is the gist of what I feel the article says. Or at the least my spin on it.
Here’s a chart of US workplace vacancies nationally (yellow), New York (white), San Franciso (inexperienced) and Los Angeles (orange). Observe the speedy decline in workplace vacancies simply previous to the monetary disaster (typically mislabeled because the subprime mortgage disaster). Then take a look at workplace vacancies after The Fed’s large financial experiment of setting charges to close zero and shopping for a ton of Treasuries, Company MBS. and so on. Whereas San Francisco returned to pre-financial disaster ranges of workplace emptiness, typically the workplace market by no means absolutely recovered.
After which “the slammer” struck: the COVID financial shutdowns. After 2020 shutdowns, workplace emptiness charges rose dramatically. Two complicating components: 1) the US moved to working at dwelling reasonably than commuting to an workplace and largely stays that method. 2) crime goes bonkers in American cities, significantly New York, Los Angeles and San Francisco (don’t fear, I haven’t forgotten about different gang nests like Chicago and Detroit). I saw that California’s woke governor Gavin “Nancy Pelosi’s nephew” Newsom said the word “gang” then apologized and replaced it with “organized groups.” No marvel Newsom can’t repair something, however he’s working for President of the US! (insert Edvard Munch’s “The Scream” portray here,)
The Fed responded to the monetary disaster by decrease charges to 25 foundation factors and printing a ship load of cash. Sadly, workplace vacancies rose to a peak in October 2010 then started falling once more. Solely to begin rising once more after Trump took workplace in 2017. Alas, Covid struck in 2020, The Fed and Federal authorities panicked. States and native governments (to not point out trainer’s unions) shut down economies and colleges. Workplace vacancies at the moment are increased than at peak of the Covid shutdowns!!!
However by no means worry! Too low for too lengthy (TLFTL) Fed Chair Janet Yellen is back as Biden’s Treasury Secretary. To royally screw issues up much more.