I just received this in my inbox. ICSC is supporting the bailout package.
I'm continually befuddled by the support for this bailout. There's no question that some action is necessary to help restore the credit markets. But there's been a ton written at this point at why the bill, as structured, may be insufficient to do that at economics blogs like Mish's Global Economic Trend Analysis, Calculated Risk and Clusterstock. How about what Nouriel Roubini has proposed?
It will push a lot of money to the banks while exposing taxpayers to a lot of risk. It doesn't address the issue of recapitalizing the banks. It doesn't explain how these assets the government is buying will be valued. It doesn't do anything to help homeowners stay in their homes.
Anyway, here's ICSC's take:
Dear ICSC Member:
Our industry has been held hostage to a lack of liquidity in the commercial real estate markets for several months, but recently the ability to obtain loans, capital guarantees and access to financial markets has become untenable. Furthermore, consumers have lost faith in the basic financial institutions that our customers rely on everyday.
Clearly, our elected officials are being asked to make a difficult decision, allocating billions of taxpayers dollars to clean up a problem that never should have been allowed to happen. However, we must restore the global faith and credit in our capital markets. If this legislation is not passed, there could be damaging long-term effects to our nation's economy and certainly to our industry.
Please click here to send an email to your US Senator to express your support of the economic recovery package. The Senate needs to know that there are Americans who understand the long-term economic ramifications of inaction.
Thank you for your support of the retail real estate industry.
ICSC Senior Vice President of Global Public Policy