More on SPG

Not only do they have $600M in cash to back the $11B in debt I was also pretty certain the equity was being grossly overstated. Now there appears to be some proof. While this is an isolated event I'm sure these will become more frequent.

As if to underscore the reality of a the ongoing structural shift in consumption taking place, the Wall Street Journal "Deal of the Week" in commercial real estate this week is the sale of one of Cincinnati's largest malls by Simon Property Group (SPG) for $20 per square foot.

According to the Journal, the average price nationally for malls is around $134 per square foot.

"To be sure, the property is in sad shape," The newspaper noted. "Some 40% of its non-anchor retail space is empty."

Perhaps that $20 number will be seen again, not per square foot, but per share. I'm guessing we'll see a little bit of their financials with tomorrow's earnings.