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.

NAI DESCO Moves to New Corporate Headquarters Within Clayton, MO

CLAYTON, MO. – Commercial real estate firm NAI DESCO is relocating its headquarters within Clayton to greatly expanded offices on the top (19th) floor of the 101 S. Hanley Building. In conjunction with the move, the firm is also launching a third-party asset management division headed by newly recruited industry veteran Mary Ellen Saenz.

“We have been growing across all business lines as a rebounding commercial real estate market fuels client demand for facilities that will help make their companies more efficient and productive,” said NAIDESCO president and CEO Toby Martin. “We simply outgrew our current location – even before factoring the new asset management operation into our space needs equation.”

Currently, NAIDESCO employs 30 people in 7,300 square feet at 8235 Forsyth Blvd. Its new headquarters at 101 S. Hanley, with 15,000 square feet, is more than twice as large.

Third-Party Asset Management Portfolio Opens with 750,000SF
Initially, under the leadership of Saenz, NAIDESCO will service a third-party commercial portfolio of 750,000 square feet – a seamless complement to the 8 million square foot portfolio managed by a sister company, The DESCO Group.

Prior to joining NAIDESCO, Saenz was vice president of asset management and customer service for Duke Realty where upon her departure she oversaw seven million square feet of commercial space. Before joining NAIDESCO last July (2015), Martin was the St. Louis Business Unit Leader for Duke and a member of its Management Committee.

“We believe the new headquarters will enhance our efforts to attract best-of-class brokers, property managers and support staff as we continue to focus on growing our team,” Martin added.

Cited on the “Largest Commercial Real Estate Firm” list published in January 2016 by the St. Louis Business Journal, NAIDESCO was formed in 2000 as a partnership of The DESCO Group and principals of NAIDESCO. Mark Schnuck serves as chairman of NAIDESCO and president and CEO of The DESCO Group. In 2011, NAIDESCO acquired the St. Louis brokerage division of Coldwell Banker Commercial.

All NAI DESCO contact information, including for the firm’s office in Illinois, will remain the same.
The DESCO Group, which primarily engages in real estate development in the Central, Mid-South, Southwest and Southeast U.S., will continue to be based at 25 N. Brentwood Boulevard in Clayton.

NAI DESCO is the local affiliate of NAI Global, a worldwide real estate network with 400 offices spanning the globe. Since 1978, NAI Global’s clients have built their businesses on the power of the expanding network. NAI Global’s extensive services include multi-site acquisitions and dispositions, sublease, tenant representation, property management, lease administration and audit, investment services, due diligence and related consulting and advisory services.