Huber Bongolan

8 Takeaways from Ben Bernanke’s Conversation with Marcus & Millichap

Read Date: 11/2020, Source

  • Dr. Ben S. Bernanke sounded largely hopeful, noting that if the U.S. can get the virus under control within the coming months, likely with the help of a vaccine, the economy might recover quicker than it did from the last downturn. 
  • The reasons include a fundamentally sound financial system this time around and aggressive action by the Federal Reserve.
    1. The Fed’s monetary policy alone won’t be enough to alleviate the pain inflicted by the pandemic on the leisure and services sectors.
    2. Another reason Bernanke feels that a second stimulus round is needed is to help state and local governments maintain essential services.
    3. Bernanke is not overly concerned about the amount of spending the federal government will have to undertake to deal with the pandemic as long as it eventually comes back to normal functioning.
    4. Low interest rates will continue to drive demand for housing.
    5. The Fed has limited capacity to help commercial mortgage borrowers who are currently struggling with delinquencies because of unpaid rents.
    6. Bernanke believes the solution to many cities’ housing crisis lies in expanding supply. “Like most economists, I think rent control has some serious drawbacks,” he noted.
    7. For the next four years, Bernanke predicts “status quo” for the agencies (they will not be privatized).
    8. Economic damage from the pandemic might last into 2022.

Published by CredibleCRE

Huber Bongolan has 9 years of experience in commercial and residential real estate finance. Mr. Bongolan has sourced $700+ million in debt and equity financing for land, construction, bridge, and permanent deals in all product types. Huber received a double bachelors, Business Economics and International Studies, from UC Irvine where he graduated Cum Laude. He then earned a double masters, MBA and MRED, with Program Distinctions, from University of Southern California. Mr. Bongolan is an Eagle Scout in the Boy Scouts of America, and holds leadership positions in both ULI (Urban Land Institute) and FIIRE (Filipinos in Institutional Real Estate). He enjoys competitive sports, mentoring youth, and teaching personal finance. Huber also enjoys writing about Real Estate trending topics and education. His blog posts can be found on https://medium.com/@huber_60971

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