The Nation's Financial Condition

[CU88]

Dozens of America’s biggest businesses paid no federal income tax — again.

55 corporations had zero federal tax liability in 2020, including household names like Nike, FedEx and Dish Network, analysis finds.

https://itep.org/55-profitable-corporat ... orate-tax/

In fact, they received a combined federal rebate of more than $3 billion, for an effective tax rate of approximately negative 9 percent.

[CU88]

The richest Americans are hiding more than 20 percent of their earnings from the Internal Revenue Service, according to a comprehensive new estimate of tax evasion, with the top 1 percent of earners accounting for more than a third of all unpaid federal taxes.

That’s costing the federal government roughly $175 billion a year in revenue, according to the findings by a team of economists from academia and the IRS.

http://gabriel-zucman.eu/files/GLRRZ2021.pdf

[cradleandshoot]

The richest Americans are hiding more than 20 percent of their earnings from the Internal Revenue Service, according to a comprehensive new estimate of tax evasion, with the top 1 percent of earners accounting for more than a third of all unpaid federal taxes.

That’s costing the federal government roughly $175 billion a year in revenue, according to the findings by a team of economists from academia and the IRS.

http://gabriel-zucman.eu/files/GLRRZ2021.pdf

It sure makes you wonder what political parties they donate to? It looks like the money they pay is purchasing just exactly what they want.

[PizzaSnake]

Consequences for corporations?

Say it isn’t so, Foghorn McTurtle...

https://www.washingtonpost.com/politics ... utType=amp

[seacoaster]

Consequences for corporations?

Say it isn’t so, Foghorn McTurtle...

https://www.washingtonpost.com/politics ... utType=amp

Exactly: McConnell wants corporate America to line up and donate when he needs the cash to support dummies like Cindy Hyde-Smith and Marsha Blackburn for the Senate, but not engage in anything "activist" on their own. "I need your money, not your opinions." Nice.

[PizzaSnake]

Consequences for corporations?

Say it isn’t so, Foghorn McTurtle...

https://www.washingtonpost.com/politics ... utType=amp

Exactly: McConnell wants corporate America to line up and donate when he needs the cash to support dummies like Cindy Hyde-Smith and Marsha Blackburn for the Senate, but not engage in anything "activist" on their own. "I need your money, not your opinions." Nice.

Looks like the fascist integration of government and business isn’t going as smoothly as he’d like.

[seacoaster]

Post article on corporations taking advantage of every loophole...and us:

https://www.washingtonpost.com/business ... p2HYTw7ZS5

“ Fifty-five of the nation’s largest corporations paid no federal income tax on more than $40 billion in profits last year, according to an analysis by the Institute on Taxation and Economic Policy, a progressive think tank.
In fact, they received a combined federal rebate of more than $3 billion, for an effective tax rate of about negative 9 percent.
“Their total corporate tax breaks for 2020, including $8.5 billion in tax avoidance and $3.5 billion in rebates, comes to $12 billion,” according to the study’s authors, Matthew Gardner and Steve Wamhoff.
The findings also underscore the favorable tax environment for big businesses in the wake of the 2017 Trump tax cuts. Twenty-six corporations have paid no federal income taxes since 2017, according to the report, including such household names as Nike, FedEx and Dish Network. Combined, the 26 companies have booked more than $77 billion in profits since 2018, while receiving nearly $5 billion in rebates, for an effective three-year tax rate of negative 6 percent.
Analysis: Wall Street’s fixation on quick profits wreaking havoc in the ‘real’ economy
A FedEx spokesman shared a statement from the company noting that “FedEx pays all of its taxes owed to local, state, federal, and foreign governments," and that “through the third quarter of fiscal year 2021, FedEx has paid nearly $2 billion in U.S. federal income tax in the last 10 years.”

[Farfromgeneva]

Hey Bill, update on Xanadu (“American Dream”.)

PROPERTY REPORT
American Dream’s Owner Defaulted. That Could Cost It Revenue From Other Malls
Default enables Triple Five’s lenders to seize 49% of revenue generated by Mall of America and West Edmonton Mall

Triple Five Group is likely to lose nearly half its ownership interest in Mall of America in Bloomington, Minn.
PHOTO: EMILIE RICHARDSON/BLOOMBERG
By Esther Fung
April 6, 2021 8:00 am ET
SAVE
SHARE
TEXT
Listen to this article4 minutes

00:00 / 03:43
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The developer of American Dream, the sprawling mall and entertainment center outside New York City, is on the verge of losing what amounts to nearly half its ownership interest in two other giant malls.

Triple Five Group defaulted last year on mortgage payments for American Dream after the mall closed for months during the pandemic and many retailers failed to make full rent payments.

That default enables Triple Five’s lenders to seize their collateral: 49% of the revenue generated by the developer’s Mall of America in Bloomington, Minn., and West Edmonton Mall in Canada, two of the largest and more successful malls in North America.


Kurt Hagen, senior vice president of development at Triple Five, acknowledged the likelihood of his firm losing that income stream when he spoke to the Bloomington City Council last month. It “hasn’t happened yet but it’s likely to happen,” he said.

Triple Five Group pledged the 49% interest in Mall of America and West Edmonton Mall to secure a $1.67 billion construction loan.

JPMorgan Chase Bank and Goldman Sachs Group Inc., two of the lenders in the construction loan, declined to comment.


The indoor ski slope at the American Dream mall in East Rutherford, N.J., in December 2019.
PHOTO: SETH WENIG/ASSOCIATED PRESS
The 3 million-square-foot American Dream complex in New Jersey opened in October 2019 and it went all in on entertainment and sports attractions to appeal to shoppers who were used to buying many products online.

It featured a 1,000-foot-long indoor ski slope, a water park and a roller coaster. The owners planned to open a giant indoor wave pool in March 2020 but closed the complex that month under pandemic restrictions, reopening in October. Triple Five struggled to collect rents while the $5.7 billion project was closed.


Mr. Hagen noted that the lenders would be able to collect rent revenue but wouldn’t be able to seize the property. He added that the transfer of revenue wouldn’t have any impact on Mall of America’s operations and that Triple Five retains the majority 51% interest.

In many cases, commercial mortgages are backed by full ownership of the related property, rather than just the revenue. But during the pandemic, some lenders opted to extend or restructure loans in place of foreclosure, especially in cases where they feel that the borrower remains the best operator of the property. Malls in particular are more complicated to operate compared with other types of commercial real estate.

Related Video
The Future of Retail: How Will the Pandemic Change How We Shop?
YOU MAY ALSO LIKE

UP NEXT


0:00 / 6:51
The Future of Retail: How Will the Pandemic Change How We Shop?
The Future of Retail: How Will the Pandemic Change How We Shop?
How will the pandemic affect America’s retailers? As states across the nation struggle to return to business, WSJ investigates the evolving retail landscape and how consumers might shop in a post-pandemic world.
Mr. Hagen said the collateral arrangement reflected the fact the two banks preferred to have the cash flow than be stuck owning an equity share in the giant complexes.

Even without having to operate these properties, lenders aren’t keen on owning malls. Rent revenue has been tumbling as more retailers divert resources to their e-commerce strategies, often giving them more leverage in negotiations with landlords.


“The lenders would have a non-controlling interest and quite frankly they have no interest in running a shopping mall,” said Mr. Hagen.

Officials from the city of Bloomington said they would closely monitor the ownership of Mall of America. Triple Five said it had not qualified for any state or federal aid and had requested financial aid from the city, but these requests had been denied.

“Over the past year we have worked closely with our lending partners to chart a path through these difficult times,” said a Mall of America spokesman. “This path has positioned the company for long-term success and growth.”


The American Dream mall in East Rutherford, N.J., in October 2019.
PHOTO: BRYAN ANSELM FOR THE WALL STREET JOURNAL
Write to Esther Fung at [email protected]

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the April 7, 2021, print edition as 'American Dream Default Fuels Nightmare.'

[PizzaSnake]

Hey Bill, update on Xanadu (“American Dream”.)

PROPERTY REPORT
American Dream’s Owner Defaulted. That Could Cost It Revenue From Other Malls
Default enables Triple Five’s lenders to seize 49% of revenue generated by Mall of America and West Edmonton Mall

Triple Five Group is likely to lose nearly half its ownership interest in Mall of America in Bloomington, Minn.
PHOTO: EMILIE RICHARDSON/BLOOMBERG
By Esther Fung
April 6, 2021 8:00 am ET
SAVE
SHARE
TEXT
Listen to this article4 minutes

00:00 / 03:43
1x

The developer of American Dream, the sprawling mall and entertainment center outside New York City, is on the verge of losing what amounts to nearly half its ownership interest in two other giant malls.

Triple Five Group defaulted last year on mortgage payments for American Dream after the mall closed for months during the pandemic and many retailers failed to make full rent payments.

That default enables Triple Five’s lenders to seize their collateral: 49% of the revenue generated by the developer’s Mall of America in Bloomington, Minn., and West Edmonton Mall in Canada, two of the largest and more successful malls in North America.


Kurt Hagen, senior vice president of development at Triple Five, acknowledged the likelihood of his firm losing that income stream when he spoke to the Bloomington City Council last month. It “hasn’t happened yet but it’s likely to happen,” he said.

Triple Five Group pledged the 49% interest in Mall of America and West Edmonton Mall to secure a $1.67 billion construction loan.

JPMorgan Chase Bank and Goldman Sachs Group Inc., two of the lenders in the construction loan, declined to comment.


The indoor ski slope at the American Dream mall in East Rutherford, N.J., in December 2019.
PHOTO: SETH WENIG/ASSOCIATED PRESS
The 3 million-square-foot American Dream complex in New Jersey opened in October 2019 and it went all in on entertainment and sports attractions to appeal to shoppers who were used to buying many products online.

It featured a 1,000-foot-long indoor ski slope, a water park and a roller coaster. The owners planned to open a giant indoor wave pool in March 2020 but closed the complex that month under pandemic restrictions, reopening in October. Triple Five struggled to collect rents while the $5.7 billion project was closed.


Mr. Hagen noted that the lenders would be able to collect rent revenue but wouldn’t be able to seize the property. He added that the transfer of revenue wouldn’t have any impact on Mall of America’s operations and that Triple Five retains the majority 51% interest.

In many cases, commercial mortgages are backed by full ownership of the related property, rather than just the revenue. But during the pandemic, some lenders opted to extend or restructure loans in place of foreclosure, especially in cases where they feel that the borrower remains the best operator of the property. Malls in particular are more complicated to operate compared with other types of commercial real estate.

Related Video
The Future of Retail: How Will the Pandemic Change How We Shop?
YOU MAY ALSO LIKE

UP NEXT


0:00 / 6:51
The Future of Retail: How Will the Pandemic Change How We Shop?
The Future of Retail: How Will the Pandemic Change How We Shop?
How will the pandemic affect America’s retailers? As states across the nation struggle to return to business, WSJ investigates the evolving retail landscape and how consumers might shop in a post-pandemic world.
Mr. Hagen said the collateral arrangement reflected the fact the two banks preferred to have the cash flow than be stuck owning an equity share in the giant complexes.

Even without having to operate these properties, lenders aren’t keen on owning malls. Rent revenue has been tumbling as more retailers divert resources to their e-commerce strategies, often giving them more leverage in negotiations with landlords.


“The lenders would have a non-controlling interest and quite frankly they have no interest in running a shopping mall,” said Mr. Hagen.

Officials from the city of Bloomington said they would closely monitor the ownership of Mall of America. Triple Five said it had not qualified for any state or federal aid and had requested financial aid from the city, but these requests had been denied.

“Over the past year we have worked closely with our lending partners to chart a path through these difficult times,” said a Mall of America spokesman. “This path has positioned the company for long-term success and growth.”


The American Dream mall in East Rutherford, N.J., in October 2019.
PHOTO: BRYAN ANSELM FOR THE WALL STREET JOURNAL
Write to Esther Fung at [email protected]

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the April 7, 2021, print edition as 'American Dream Default Fuels Nightmare.'

Thoughts on the trend towards remote working? Seen any reports of commercial property owners in distress?

[njbill]

[flash=][/flash]

Hey Bill, update on Xanadu (“American Dream”.)

PROPERTY REPORT
American Dream’s Owner Defaulted. That Could Cost It Revenue From Other Malls
Default enables Triple Five’s lenders to seize 49% of revenue generated by Mall of America and West Edmonton Mall

Triple Five Group is likely to lose nearly half its ownership interest in Mall of America in Bloomington, Minn.
PHOTO: EMILIE RICHARDSON/BLOOMBERG
By Esther Fung
April 6, 2021 8:00 am ET
SAVE
SHARE
TEXT
Listen to this article4 minutes

00:00 / 03:43
1x

The developer of American Dream, the sprawling mall and entertainment center outside New York City, is on the verge of losing what amounts to nearly half its ownership interest in two other giant malls.

Triple Five Group defaulted last year on mortgage payments for American Dream after the mall closed for months during the pandemic and many retailers failed to make full rent payments.

That default enables Triple Five’s lenders to seize their collateral: 49% of the revenue generated by the developer’s Mall of America in Bloomington, Minn., and West Edmonton Mall in Canada, two of the largest and more successful malls in North America.


Kurt Hagen, senior vice president of development at Triple Five, acknowledged the likelihood of his firm losing that income stream when he spoke to the Bloomington City Council last month. It “hasn’t happened yet but it’s likely to happen,” he said.

Triple Five Group pledged the 49% interest in Mall of America and West Edmonton Mall to secure a $1.67 billion construction loan.

JPMorgan Chase Bank and Goldman Sachs Group Inc., two of the lenders in the construction loan, declined to comment.


The indoor ski slope at the American Dream mall in East Rutherford, N.J., in December 2019.
PHOTO: SETH WENIG/ASSOCIATED PRESS
The 3 million-square-foot American Dream complex in New Jersey opened in October 2019 and it went all in on entertainment and sports attractions to appeal to shoppers who were used to buying many products online.

It featured a 1,000-foot-long indoor ski slope, a water park and a roller coaster. The owners planned to open a giant indoor wave pool in March 2020 but closed the complex that month under pandemic restrictions, reopening in October. Triple Five struggled to collect rents while the $5.7 billion project was closed.


Mr. Hagen noted that the lenders would be able to collect rent revenue but wouldn’t be able to seize the property. He added that the transfer of revenue wouldn’t have any impact on Mall of America’s operations and that Triple Five retains the majority 51% interest.

In many cases, commercial mortgages are backed by full ownership of the related property, rather than just the revenue. But during the pandemic, some lenders opted to extend or restructure loans in place of foreclosure, especially in cases where they feel that the borrower remains the best operator of the property. Malls in particular are more complicated to operate compared with other types of commercial real estate.

Related Video
The Future of Retail: How Will the Pandemic Change How We Shop?
YOU MAY ALSO LIKE

UP NEXT


0:00 / 6:51
The Future of Retail: How Will the Pandemic Change How We Shop?
The Future of Retail: How Will the Pandemic Change How We Shop?
How will the pandemic affect America’s retailers? As states across the nation struggle to return to business, WSJ investigates the evolving retail landscape and how consumers might shop in a post-pandemic world.
Mr. Hagen said the collateral arrangement reflected the fact the two banks preferred to have the cash flow than be stuck owning an equity share in the giant complexes.

Even without having to operate these properties, lenders aren’t keen on owning malls. Rent revenue has been tumbling as more retailers divert resources to their e-commerce strategies, often giving them more leverage in negotiations with landlords.


“The lenders would have a non-controlling interest and quite frankly they have no interest in running a shopping mall,” said Mr. Hagen.

Officials from the city of Bloomington said they would closely monitor the ownership of Mall of America. Triple Five said it had not qualified for any state or federal aid and had requested financial aid from the city, but these requests had been denied.

“Over the past year we have worked closely with our lending partners to chart a path through these difficult times,” said a Mall of America spokesman. “This path has positioned the company for long-term success and growth.”


The American Dream mall in East Rutherford, N.J., in October 2019.
PHOTO: BRYAN ANSELM FOR THE WALL STREET JOURNAL
Write to Esther Fung at [email protected]

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the April 7, 2021, print edition as 'American Dream Default Fuels Nightmare.'

It is not commonly known that New Jersey has the best skiing in the country.

[ardilla secreta]

[flash=][/flash]

Hey Bill, update on Xanadu (“American Dream”.)

PROPERTY REPORT
American Dream’s Owner Defaulted. That Could Cost It Revenue From Other Malls
Default enables Triple Five’s lenders to seize 49% of revenue generated by Mall of America and West Edmonton Mall

Triple Five Group is likely to lose nearly half its ownership interest in Mall of America in Bloomington, Minn.
PHOTO: EMILIE RICHARDSON/BLOOMBERG
By Esther Fung
April 6, 2021 8:00 am ET
SAVE
SHARE
TEXT
Listen to this article4 minutes

00:00 / 03:43
1x

The developer of American Dream, the sprawling mall and entertainment center outside New York City, is on the verge of losing what amounts to nearly half its ownership interest in two other giant malls.

Triple Five Group defaulted last year on mortgage payments for American Dream after the mall closed for months during the pandemic and many retailers failed to make full rent payments.

That default enables Triple Five’s lenders to seize their collateral: 49% of the revenue generated by the developer’s Mall of America in Bloomington, Minn., and West Edmonton Mall in Canada, two of the largest and more successful malls in North America.


Kurt Hagen, senior vice president of development at Triple Five, acknowledged the likelihood of his firm losing that income stream when he spoke to the Bloomington City Council last month. It “hasn’t happened yet but it’s likely to happen,” he said.

Triple Five Group pledged the 49% interest in Mall of America and West Edmonton Mall to secure a $1.67 billion construction loan.

JPMorgan Chase Bank and Goldman Sachs Group Inc., two of the lenders in the construction loan, declined to comment.


The indoor ski slope at the American Dream mall in East Rutherford, N.J., in December 2019.
PHOTO: SETH WENIG/ASSOCIATED PRESS
The 3 million-square-foot American Dream complex in New Jersey opened in October 2019 and it went all in on entertainment and sports attractions to appeal to shoppers who were used to buying many products online.

It featured a 1,000-foot-long indoor ski slope, a water park and a roller coaster. The owners planned to open a giant indoor wave pool in March 2020 but closed the complex that month under pandemic restrictions, reopening in October. Triple Five struggled to collect rents while the $5.7 billion project was closed.


Mr. Hagen noted that the lenders would be able to collect rent revenue but wouldn’t be able to seize the property. He added that the transfer of revenue wouldn’t have any impact on Mall of America’s operations and that Triple Five retains the majority 51% interest.

In many cases, commercial mortgages are backed by full ownership of the related property, rather than just the revenue. But during the pandemic, some lenders opted to extend or restructure loans in place of foreclosure, especially in cases where they feel that the borrower remains the best operator of the property. Malls in particular are more complicated to operate compared with other types of commercial real estate.

Related Video
The Future of Retail: How Will the Pandemic Change How We Shop?
YOU MAY ALSO LIKE

UP NEXT


0:00 / 6:51
The Future of Retail: How Will the Pandemic Change How We Shop?
The Future of Retail: How Will the Pandemic Change How We Shop?
How will the pandemic affect America’s retailers? As states across the nation struggle to return to business, WSJ investigates the evolving retail landscape and how consumers might shop in a post-pandemic world.
Mr. Hagen said the collateral arrangement reflected the fact the two banks preferred to have the cash flow than be stuck owning an equity share in the giant complexes.

Even without having to operate these properties, lenders aren’t keen on owning malls. Rent revenue has been tumbling as more retailers divert resources to their e-commerce strategies, often giving them more leverage in negotiations with landlords.


“The lenders would have a non-controlling interest and quite frankly they have no interest in running a shopping mall,” said Mr. Hagen.

Officials from the city of Bloomington said they would closely monitor the ownership of Mall of America. Triple Five said it had not qualified for any state or federal aid and had requested financial aid from the city, but these requests had been denied.

“Over the past year we have worked closely with our lending partners to chart a path through these difficult times,” said a Mall of America spokesman. “This path has positioned the company for long-term success and growth.”


The American Dream mall in East Rutherford, N.J., in October 2019.
PHOTO: BRYAN ANSELM FOR THE WALL STREET JOURNAL
Write to Esther Fung at [email protected]

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the April 7, 2021, print edition as 'American Dream Default Fuels Nightmare.'

It is not commonly known that New Jersey has the best skiing in the country.

You never skied the slopes of Mt Laurel?

[njbill]

There actually used to be a ski hill in South Jersey. Elevation above sea level, about 207’ as I recall. Oxygen masks were available at the top of the mountain.

Forget what the place was called, but I represented the owners in some litigation following their sale of the property. Walked the property once. Never skied there.

Years later, and well after my involvement concluded, the property was purchased by somebody by the name of Donald T**** who turned it into a T**** golf course. The course is near Pine Valley but is decidedly not Pine Valley. Not surprisingly, the T****ster tried to confuse people about that.

No, I never skied the “slopes” of Mount Laurel, though I did live in the town for about six years.

[CU88]

I love it when the r's speak toward socialism, they are such idiots.

"When it comes to these corporations, they’ve gotten big, and powerful, because government has helped them, because government has subsidized them, because government..." - Sen. Josh Hawley

[Farfromgeneva]

[flash=][/flash]

Hey Bill, update on Xanadu (“American Dream”.)

PROPERTY REPORT
American Dream’s Owner Defaulted. That Could Cost It Revenue From Other Malls
Default enables Triple Five’s lenders to seize 49% of revenue generated by Mall of America and West Edmonton Mall

Triple Five Group is likely to lose nearly half its ownership interest in Mall of America in Bloomington, Minn.
PHOTO: EMILIE RICHARDSON/BLOOMBERG
By Esther Fung
April 6, 2021 8:00 am ET
SAVE
SHARE
TEXT
Listen to this article4 minutes

00:00 / 03:43
1x

The developer of American Dream, the sprawling mall and entertainment center outside New York City, is on the verge of losing what amounts to nearly half its ownership interest in two other giant malls.

Triple Five Group defaulted last year on mortgage payments for American Dream after the mall closed for months during the pandemic and many retailers failed to make full rent payments.

That default enables Triple Five’s lenders to seize their collateral: 49% of the revenue generated by the developer’s Mall of America in Bloomington, Minn., and West Edmonton Mall in Canada, two of the largest and more successful malls in North America.


Kurt Hagen, senior vice president of development at Triple Five, acknowledged the likelihood of his firm losing that income stream when he spoke to the Bloomington City Council last month. It “hasn’t happened yet but it’s likely to happen,” he said.

Triple Five Group pledged the 49% interest in Mall of America and West Edmonton Mall to secure a $1.67 billion construction loan.

JPMorgan Chase Bank and Goldman Sachs Group Inc., two of the lenders in the construction loan, declined to comment.


The indoor ski slope at the American Dream mall in East Rutherford, N.J., in December 2019.
PHOTO: SETH WENIG/ASSOCIATED PRESS
The 3 million-square-foot American Dream complex in New Jersey opened in October 2019 and it went all in on entertainment and sports attractions to appeal to shoppers who were used to buying many products online.

It featured a 1,000-foot-long indoor ski slope, a water park and a roller coaster. The owners planned to open a giant indoor wave pool in March 2020 but closed the complex that month under pandemic restrictions, reopening in October. Triple Five struggled to collect rents while the $5.7 billion project was closed.


Mr. Hagen noted that the lenders would be able to collect rent revenue but wouldn’t be able to seize the property. He added that the transfer of revenue wouldn’t have any impact on Mall of America’s operations and that Triple Five retains the majority 51% interest.

In many cases, commercial mortgages are backed by full ownership of the related property, rather than just the revenue. But during the pandemic, some lenders opted to extend or restructure loans in place of foreclosure, especially in cases where they feel that the borrower remains the best operator of the property. Malls in particular are more complicated to operate compared with other types of commercial real estate.

Related Video
The Future of Retail: How Will the Pandemic Change How We Shop?
YOU MAY ALSO LIKE

UP NEXT


0:00 / 6:51
The Future of Retail: How Will the Pandemic Change How We Shop?
The Future of Retail: How Will the Pandemic Change How We Shop?
How will the pandemic affect America’s retailers? As states across the nation struggle to return to business, WSJ investigates the evolving retail landscape and how consumers might shop in a post-pandemic world.
Mr. Hagen said the collateral arrangement reflected the fact the two banks preferred to have the cash flow than be stuck owning an equity share in the giant complexes.

Even without having to operate these properties, lenders aren’t keen on owning malls. Rent revenue has been tumbling as more retailers divert resources to their e-commerce strategies, often giving them more leverage in negotiations with landlords.


“The lenders would have a non-controlling interest and quite frankly they have no interest in running a shopping mall,” said Mr. Hagen.

Officials from the city of Bloomington said they would closely monitor the ownership of Mall of America. Triple Five said it had not qualified for any state or federal aid and had requested financial aid from the city, but these requests had been denied.

“Over the past year we have worked closely with our lending partners to chart a path through these difficult times,” said a Mall of America spokesman. “This path has positioned the company for long-term success and growth.”


The American Dream mall in East Rutherford, N.J., in October 2019.
PHOTO: BRYAN ANSELM FOR THE WALL STREET JOURNAL
Write to Esther Fung at [email protected]

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the April 7, 2021, print edition as 'American Dream Default Fuels Nightmare.'

It is not commonly known that New Jersey has the best skiing in the country.

Did you annex the Poconos?

[seacoaster]

https://www.axios.com/biden-polling-tax ... ce=twitter

[Farfromgeneva]

COMMODITIES
Raw Materials Prices Have Surged. Corporate Profits Are Likely Next.
Higher input costs generally accompany broad economic growth, allowing companies to pass along added expenses and fatten margins

Lumber prices shot to all-time highs during the pandemic.
PHOTO: SCOTT OLSON/GETTY IMAGES
By Ryan Dezember
April 12, 2021 5:30 am ET

Prices are surging for raw materials, leading to higher costs for companies from home builders to clothing makers.

If history repeats, that will be a boon to corporate bottom lines and investors as well.

Rising material costs usually foreshadow fatter profit margins, according to Jonathan Golub, chief U.S. equity strategist at Credit Suisse Group.


Higher input costs generally accompany broad economic growth, which allows companies to pass along added expenses through higher prices of their own. Also, fixed expenses, like factory equipment, can be spread over greater sales.

Mr. Golub tracked operating margins among companies included in the S&P 500 stock index and found rises and declines that mirror earlier moves in materials prices, for which he used an index of commodities that includes zinc, rubber, steel scrap and burlap.

Lately it has been hard to find a commodity not rising in price. Wheat, copper, wood pulp, crude oil and corn have all rebounded from the depths of last spring’s economic lockdowns.

Lumber prices have sailed more than 75% higher than the pre-pandemic record. High wood prices along with rising copper and crude oil bode especially well for corporate earnings, Mr. Golub said.

The producer-price index, a measure of the prices businesses receive for their goods and services, rose 1% in March, the Labor Department said Friday. Steel, iron, industrial chemicals, diesel and plastic resins were big gainers. The inflation measure ended March up 4.2% from a year earlier, the biggest 12-month gain in a decade.

Scott Colyer, chief executive of Advisors Asset Management, which manages $38 billion, said he believes commodity prices and in turn the price of manufactured goods have room to run, thanks to fiscal and monetary stimulus from governments aiming to soften the blow of pandemic lockdowns and revive their economies. Meanwhile, scarcity of some materials and snarled supply lines have purchasing managers stockpiling the materials their companies need to do business, which adds more demand.
“There is a point where the system will not tolerate increases, but we’re not in one of those places today at all,” Mr. Colyer said. “Things are lined up where this should be a pretty good party.”

The frenzied pandemic housing market has allowed home builders and their suppliers, like Sherwin-Williams Co. and door maker Masonite International Corp. , to counteract rising costs with higher prices without losing customers. Consumer-product firms have followed
Companies including Levi Strauss & Co., Corona brewer Constellation Brands Inc. and Conagra Brands Inc., the packaged-food company behind Vlasic pickles and Reddi-wip, have told investors they are pushing prices higher in response to more costly raw materials.

“History shows us that price adjustments are more likely to be accepted in the market when industrywide and broad-based input cost inflation occurs, and that’s the environment we see today,” Conagra finance chief David Marberger told investors last week.

Write to Ryan Dezember at [email protected]

[Brooklyn]

U.S. jobless claims plunge to 576,000, lowest since pandemic


https://www.newsday.com/business/corona ... 1.50215766


The number of Americans applying for unemployment benefits tumbled last week to 576,000, a post-COVID low and a hopeful sign that layoffs are easing as the economy recovers from the pandemic recession.

The Labor Department said Thursday that applications plummeted by 193,000 from a revised 769,000 a week earlier. Jobless claims are now down sharply from a peak of 900,000 in early January and well below the 700,000-plus level they had been stuck at for months.

The decline in unemployment claims coincides with other evidence that the economy is strengthening as vaccinations accelerate, pandemic business restrictions are lifted in many states and Americans appear increasingly willing to travel, shop, eat out and otherwise spend again. In March, employers added a healthy 916,000 jobs, the most since August, and the unemployment rate fell to 6%, less than half the pandemic peak of 14.8%.

Other healthy economic data was reported Thursday, underscoring that a potential boom, much-anticipated by economists, may be getting under way. Trillions of dollars of government stimulus, including $1,400 checks largely distributed last month, have maintained overall household income despite widespread job losses in the pandemic.

Those checks, supplemented by higher savings that many households have managed to build, drove retail sales sharply higher in March. Sales at stores, car dealers, restaurants and bars jumped 9.8%. It was the biggest gain since retail sales soared 18% in May of last year in a partial bounce-back from the virus’ initial blow.

"Today’s report shows just how willing American consumers are to spend when the means and options are available," said Maria Solovieva, an economist at TD Bank. "Fast vaccination and removal of restrictions burst the spending floodgates wide open."

For the week ending March 27, 16.9 million people were continuing to collect unemployment benefits, down from 18.2 million in the previous week. That decline suggests that some of the unemployed are being called back to jobs.



Yet the still-high number of ongoing recipients shows that even as the economy has improved in recent weeks, millions are facing a loss of a job or income and have been struggling to pay bills or rent. The last time the jobless rate was this low, weekly claims were around 350,000, still well below their current level.

Economists point to a range of potential explanations. Some states are still struggling to clear backlogs of applications from previous weeks. As a result, jobless claims being reported now may stem from layoffs that occurred weeks ago. Other states are also facing what they suspect is a sizable number of fraudulent claims for unemployment aid.

Another possible factor is that under President Joe Biden’s $1.9 trillion rescue package, the federal government is now supplementing weekly jobless benefits by $300 a week — on top of the average state unemployment payment of about $340 — through September. That extra money may be encouraging more people to request unemployment aid.

Still, not all unemployment applications are approved. The government reports each week on how many people have applied for aid — but not how many have actually received it. Claims are rejected if the applicants hadn’t earned enough money to qualify or had been fired or quit their jobs. Unemployment aid is intended for people who have been laid off through no fault of their own.

Michael Feroli, an economist at JPMorgan Chase, has found that the proportion of unemployment claims that are approved plummeted in the winter months. In February, for example, fewer than 25% of applications were approved and paid, Feroli discovered, down from a long-run average of about 45%. That suggests that the current level of jobless claims has been artificially inflated as more Americans seek benefits, because of the higher payments, even though some don’t actually qualify.

Most analysts have grown bullish about the economy’s prospects for the coming months. They include Federal Reserve Chair Jerome Powell, who expressed his belief in an appearance last Sunday on "60 Minutes"that the economy is at "an inflection point" and appears poised for a boom.

"We feel like we’re at a place where the economy’s about to start growing much more quickly and job creation coming in much more quickly," Powell said. "This growth that we’re expecting in the second half of this year is going to be very strong. And job creation, I would expect to be very strong."

Many economists, in fact, are concerned more about a potential burst of inflation stemming from the unleashing of pent-up consumer demand. Prices for lumber, copper, oil and other raw materials have already risen as demand for gas, homes and electronic equipment has jumped.

Consumer prices rose 0.6% in March, the most since 2012, the government reported Tuesday, and are up 2.6% in the past year. Excluding the volatile food and energy categories, though, prices rose by a more benign 1.6% year over year.

Powell has said that while inflation will likely pick up in the coming months, the price increases will probably ease as the pandemic-induced disruptions in many industries’ supply chains are worked out.





Thank you Mr Biden!

[Peter Brown]

U.S. jobless claims plunge to 576,000, lowest since pandemic


https://www.newsday.com/business/corona ... 1.50215766


The number of Americans applying for unemployment benefits tumbled last week to 576,000, a post-COVID low and a hopeful sign that layoffs are easing as the economy recovers from the pandemic recession.

The Labor Department said Thursday that applications plummeted by 193,000 from a revised 769,000 a week earlier. Jobless claims are now down sharply from a peak of 900,000 in early January and well below the 700,000-plus level they had been stuck at for months.

The decline in unemployment claims coincides with other evidence that the economy is strengthening as vaccinations accelerate, pandemic business restrictions are lifted in many states and Americans appear increasingly willing to travel, shop, eat out and otherwise spend again. In March, employers added a healthy 916,000 jobs, the most since August, and the unemployment rate fell to 6%, less than half the pandemic peak of 14.8%.

Other healthy economic data was reported Thursday, underscoring that a potential boom, much-anticipated by economists, may be getting under way. Trillions of dollars of government stimulus, including $1,400 checks largely distributed last month, have maintained overall household income despite widespread job losses in the pandemic.

Those checks, supplemented by higher savings that many households have managed to build, drove retail sales sharply higher in March. Sales at stores, car dealers, restaurants and bars jumped 9.8%. It was the biggest gain since retail sales soared 18% in May of last year in a partial bounce-back from the virus’ initial blow.

"Today’s report shows just how willing American consumers are to spend when the means and options are available," said Maria Solovieva, an economist at TD Bank. "Fast vaccination and removal of restrictions burst the spending floodgates wide open."

For the week ending March 27, 16.9 million people were continuing to collect unemployment benefits, down from 18.2 million in the previous week. That decline suggests that some of the unemployed are being called back to jobs.



Yet the still-high number of ongoing recipients shows that even as the economy has improved in recent weeks, millions are facing a loss of a job or income and have been struggling to pay bills or rent. The last time the jobless rate was this low, weekly claims were around 350,000, still well below their current level.

Economists point to a range of potential explanations. Some states are still struggling to clear backlogs of applications from previous weeks. As a result, jobless claims being reported now may stem from layoffs that occurred weeks ago. Other states are also facing what they suspect is a sizable number of fraudulent claims for unemployment aid.

Another possible factor is that under President Joe Biden’s $1.9 trillion rescue package, the federal government is now supplementing weekly jobless benefits by $300 a week — on top of the average state unemployment payment of about $340 — through September. That extra money may be encouraging more people to request unemployment aid.

Still, not all unemployment applications are approved. The government reports each week on how many people have applied for aid — but not how many have actually received it. Claims are rejected if the applicants hadn’t earned enough money to qualify or had been fired or quit their jobs. Unemployment aid is intended for people who have been laid off through no fault of their own.

Michael Feroli, an economist at JPMorgan Chase, has found that the proportion of unemployment claims that are approved plummeted in the winter months. In February, for example, fewer than 25% of applications were approved and paid, Feroli discovered, down from a long-run average of about 45%. That suggests that the current level of jobless claims has been artificially inflated as more Americans seek benefits, because of the higher payments, even though some don’t actually qualify.

Most analysts have grown bullish about the economy’s prospects for the coming months. They include Federal Reserve Chair Jerome Powell, who expressed his belief in an appearance last Sunday on "60 Minutes"that the economy is at "an inflection point" and appears poised for a boom.

"We feel like we’re at a place where the economy’s about to start growing much more quickly and job creation coming in much more quickly," Powell said. "This growth that we’re expecting in the second half of this year is going to be very strong. And job creation, I would expect to be very strong."

Many economists, in fact, are concerned more about a potential burst of inflation stemming from the unleashing of pent-up consumer demand. Prices for lumber, copper, oil and other raw materials have already risen as demand for gas, homes and electronic equipment has jumped.

Consumer prices rose 0.6% in March, the most since 2012, the government reported Tuesday, and are up 2.6% in the past year. Excluding the volatile food and energy categories, though, prices rose by a more benign 1.6% year over year.

Powell has said that while inflation will likely pick up in the coming months, the price increases will probably ease as the pandemic-induced disruptions in many industries’ supply chains are worked out.

Thank you Mr Biden!

Too bad we only have ten years of life left on earth, per Democratic leader AOC. (the party isn’t a mental ward or anything)

[Brooklyn]

Too bad we only have ten years of life left on earth, per Democratic leader AOC. (the party isn’t a mental ward or anything)

LOL. Your pals in the television evangelist camp predicted WW III a long time ago. Remember?

[jhu72]

It would appear that there will soon be significant upward pressure on blue collar wages. With Biden programs providing more job opportunity and people not wanting to go back to work at the pre-pandemic low wage rates. Will likely then have a worker shortage that will need immigrants. Already have a worker shortage with people not wanting to go back to work at the pre-pandemic wage rate.