Tuesday, February 19, 2013

Sequestration is already here

Wells Fargo Econ Group was out with a write up yesterday covering which states were at the highest risk of Sequestration related negative business impacts. The city next to the cotton field I grew up in was number seven on their list. Growing up, a lot of friends had parents who were highly trained engineers, they built massive weapons systems and space exploration systems, and cars ;-). Talking with folks back home recently indicates that Sequestration effects are already being felt - weeks have been cut to 4 days, early retirement buyouts are being offered, and real estate owners are trying to hit the eject button.

Someone needs to put out a nice exposure list of properties most likely to be impacted by sequestration.

2 comments:

crabsofsteel said...

who needs sequestration when you have Countrywide Commercial Mortgage? In case it slipped by, two MLCFC deals AM classes were shorted interest this month. Who ever bought 07-9 AJ last month for $80 must be having a difficult conversation.

Anonymous said...

You could start the list by looking at Vornado's Virginia portfolio; anything in Arlington is at risk.