Mid-Year Market Review Videos & Reports Now Available

NAI DESCO is pleased to present our mid-year market overview videos and reports. View each short video – just the right length to fill you in on the latest commercial real estate trends – then download the report for an in-depth look at each submarket.

Click here for links to the videos and reports.

And stay tuned for more videos each quarter.

New Whitepaper: The Euro is Still Doomed

People say, “But if the euro breaks, it will be painful.” What they miss is that its existence is even more painful. Of course, ending a 16-year (and running) fantasyturned-nightmare will be painful. But making it a 20- or 25-year fantasy will only make it a larger problem, and assure more years of deepening anguish. If you believe in markets at all, you want the euro to fail, and fail soon!

In addition to the complete ineffectiveness of the Maastricht Treaty’s fiscal constraints, when in the early 2000s Germany and Scandinavian countries introduced major market reforms that massively improved their competitiveness relative to other Euroland members, the euro’s fixed exchange rate regime was rendered hopeless. In the eyes of Europe’s almost uniformly left-leaning bureaucrats, the real villain is Germany for adopting the serious market reforms that improved its competitiveness. Damn those Germans for giving into market pressures to be competitive! In a flexible exchange rate system, fundamental German market reforms would have resulted in a 20-40% increase in the value of the Deutsche Mark versus other currencies. But as Euroland exchange rates remained fixed at their original terms of trade, Germany’s currency could not appreciate. Instead Germany benefitted both from fundamental market reforms and an artificially low exchange rate. This excessively cheap German exchange rate handicapped nations with currencies that could not depreciate. To put a simple face on matters, it made Volkswagens too cheap for Greeks, and made Greek vacations too expensive for Germans. This caused money to flow from Greece to Germany (and in general from the south to the north), with no need for this money to flow back. Thus, unlike the case of U.S. dollars flowing
to China (i.e., we buy shoes, etc. made in China) as a trade deficit, necessarily returning to the U.S. (i.e., China buys U.S. bonds) as a capital surplus, once euros arrive in Germany they do not flow back to Greece, as the euro can be invested anywhere in Euroland. Read full white paper here.