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FacebookA trillion dollar commercial real estate crisis will begin to unfold in 2010, when short term loans must be refinanced, yet commercial property values have plummeted.
As many as 500 regional banks may fail as commercial loans default, and the FDIC only has 10 billion left to cover insolvent banks. Compounding this Deuthsche Bank forecasts that 48% of home mortgages will owe more than the home is worth by the end of 2011.
Looks like Obama will be cleaning up Bush’s mess for a while longer.
It’s already pretty bad here in Florida. Some malls have closed completely and many are in heavy financial trouble. Also, many small businesses have gone out of business, leaving behind empty stores everywhere. Yeah, the recession has really hit Florida hard. It hit California hard, too. But I don’t think the commercial real estate market will crash in many other places. I think we are seeing the beginning of a recovery. But that doesn’t mean the commercial real estate market won’t see a drop. It just means that things probably won’t be as bad as folks were predicting six months ago when they thought the sky was falling. My best guess is that it will take a long time to recover in the job market and in the real estate market. The recovery will be slow but it will get better. The worst is already over.
Commercial real estate crisis will be insignificant compared to full blown crisis of national debt and economic collapse.
The crisis will start within two or three weeks, not in 2010
This country is finished.