Quote:
Originally Posted by tyl604
Compress - you are correct. The commercial mortgage market is the next thing to crash. Most of us believe it will happen within the next 60-90 days, maybe sooner. FDIC expectations at the present are for 400-500 more bank failures but that could expand as the commercial loans go off the cliff.
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True, once the collateral value of commercial RE hits the threshold where its cheaper for owner/investors to let properties go back to the bank Tsunami is the perfect term, coupled with the 5 year balloons coming due its going to be a perfect storm for a collapse. I have friends who are CCIM graduates with holdings in the 100M to Billions, every single one of them share the opinion that the bottom is just beginning to fall and are positioning themselves for the worst. With the lack of small business investment, industrial, warehouse and retail growth formally economic commercial hot-spots are going to become ghost towns.
I guess the silver lining is some space is so cheap that its actually spurring growth in some areas, it a crazy world indeed.