If you loved what the subprime/housing fiasco did for you, the coming CRE (Commercial Real Estate) bust is going to give you even more to love!
Between now and 2014 $1.4 trn in CRE loans come due.
At peak, CRE was valued at $6.5 trn. Now it is closer to $3.5 trn. Said another way, much closer to the LOAN amounts outstanding.
In the wake of the banking (and other) massive bailouts, no one seems a bit concerned. Hey! Everybody "expects" the Treasury and Fed to solve any future problems. So NO problem, right?
- And even if there is a problem, the shnook taxpayers will make it all better. So, NO PROBLEM! Most of them are unaware that 'solvency' and 'liquidity' are not the same thing...
Monday 15 February 2010
Movin' on up!.............from Rico
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1 comment:
I only love what the fiasco did for me in as much as it finally burst the speculation bubble and allowed housing prices to fall and enabled me to get the appropriate sized house for my family that I was unable to afford due to the ridiculously inflated prices. I am in escrow with a short sale in which I'm helping some poor schmuck save his credit after the home he bought at the height is suddenly upside down by a factor of 2. He will now be able to continue on without being bankrupt. I say, let 'em fall and allow the free market system to pick itself back up.
Just one dad's opinion
http://dadhasanopinion.blogspot.com/
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