As the leading gateway markets become much too pricey, more yield-deprived capital edges into other places in search of better returns. Pickings remain slim given compromised demand except in the apartment sector. It's basically the same old story. Some investors get excited about energy and high tech markets where some modicum of high paying jobs get generated. They like the Texas cities—Houston, Austin and the Dallas Fort Worth Metroplex for energy and San Francisco-San Jose, Seattle, the aforementioned Austin, Boston and the North Carolina Research Triangle for high tech.

How long do we really think interest rates will stay down? It's probably the most important question facing real estate players today. Low interest rates have allowed many borrowers to sidestep default or foreclosure and enabled refinancing at lower rates than original mortgages. In fact, low rates have allowed the industry to steer mostly clear of the cliff of hundreds of billions of dollars of commercial mortgages refinancing in an environment where many borrowers struggle with balances at or above property values. Simply, they have prevented a debacle.

You might call it an Olympian tussle or at least a throwback to the old camp Color War games—Green versus Brown. And it looks more like a no contest, the way the battle is heading. Given soft office vacancy rates across most markets, it’s pretty clear we don’t need to see new office construction, and absolutely none in most suburbs. But in some major cities like Chicago, New York and Washington building goes on and…

I've discussed how traditional pensions are going the way of Best Buy and RIM, and the related looming financial problems for Baby Boomers entering their senior years. By sheer numbers, there will be plenty of ageing Americans seeking senior housing in the next decade. But the numbers will not be as big as expected since a lower percentage of older people will be able to afford decent accommodations on their own. As I have pointed out, instead more seniors will be living with their children and/or grandchildren to make ends meet—they will have insufficient savings and inadequate pensions. Social Security will certainly not cover enough to meet most basic needs.

I've discussed how traditional pensions are going the way of Best Buy and RIM, and the related looming financial problems for Baby Boomers entering their senior years. By sheer numbers, there will be plenty of ageing Americans seeking senior housing in the next decade. But the numbers will not be as big as expected since a lower percentage of older people will be able to afford decent accommodations on their own. As I have pointed out, instead more seniors will be living with their children and/or grandchildren to make ends meet—they will have insufficient savings and inadequate pensions. Social Security will certainly not cover enough to meet most basic needs.

Over the past three years I've been talking about the "Waltons' Effect"—how families will need to pool resources and live together in order to get by in the Era of Less. Last week the Census Bureau confirmed what we can see happening all around us. In fact, young adults have moved back in or are staying in parent homes while more grandparents are moving back in too. And as you would expect in down economic times more non-related adults also are living together.

Have you got that sinking feeling that the election won't make much difference and partisan solutions won't fix the nation's let alone the world's severe economic problems? Well if not, you should. The shell game is almost over where governments and banks can keep shifting IOUs around to each other, pretending they can bail each other out of trouble when so many countries and their financial systems drown in red ink and can only print money to shore themselves up.

The Scott Walker victory rightly has been billed as a blow to labor unions and public employees. But it also signals what will be a significant paring back of public pension funds. More states and municipalities will be moving to end their generous and unsustainable retirement packages, taking the route of corporations and turning defined benefit plans into 401Ks or some equivalent, which will reduce an increasingly impossible taxpayer burden.