How will the commercial real estate collapse effect the economy, badly or not?
May 18, 2010
in
Commercial Property Loans
A large amount of the commercial loans start coming to term this year (lasting three years). None of them are worth what’s owed and will be defaulted on.
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8 comments
Flags of Our Fathers on May 18, 2010 at 4:40 pm
It will be yet another nail in this once great nation’s economy!
ONE AND DONE!!!!!!
Missouri Patriot on May 18, 2010 at 4:40 pm
All apart of Hussein Obama’s plan to destroy America!!!!!!
Mari on May 18, 2010 at 4:40 pm
Yes, it’s being called the second wave of real estate losses. Nothing like residential — what happened in 2008. We’ll see where this is headed. Not sure.
To add: The answer below me is not correct. It’s coming this year and heading into 2013-14. This time it is differnt; it’s not just CMBS (commercial mortgage-backed securities; similar to RMBS in 2008 and 2009) — but the actual commercial mortgage loans too.
your conscience on May 18, 2010 at 4:40 pm
little behind the curve dawg, by at least 9 months, most of it has already been absorbed.
Pillory on May 18, 2010 at 4:40 pm
Massive bank write-offs and the continuation of cheap money by Bernanke will head off the crisis, but will result in increasing inflation and debt down the road.
jaker on May 18, 2010 at 4:40 pm
It would be good for the economy if all of that property went into foreclosure and the people who put up the money lost their investment.
NOT
No spare change for my brother on May 18, 2010 at 4:40 pm
I was wondering when it would collapse – should be interesting though.
Obama will just print more money – if there’s a lot of Unions involved.
GM is lucky – they are big union – no wonder they got a huge bailout.
Lala on May 18, 2010 at 4:40 pm
Yeah, um…that happened already, and I think we have seen the results.
Commercial real estate has been in the sh*tter since 2007.