$3 Trillion In Commercial Mortgages Set To Implode The commercial real estate bust

Discussion in 'Economy' started by Neubarth, May 27, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    $3 Trillion In Commercial Mortgages Set To Implode


    The commercial real estate bust is in full swing. This $3 trillion mortgage market is standing to push hundreds of banks into failure and adding additional strain to the embattled FDIC. Commercial real estate (CRE) is a good indicator of where things are heading economically because it is a reflection of what revenues are being brought in by certain properties. For example, a strip mall owner will lease out space to clients that ideally will earn more money each month to cover their rents. That is typically how CRE deals went down. But for the past decade people invested in CRE with the implied notion that they could always sell the underlying CRE for a higher price irrespective of the actual revenue stream the real estate could produce. For CRE this is sin number one.

    $3 Trillion In Commercial Mortgages Set To Implode
    Most over valued region in San Francisco gets a taste of the commercial real estate bust. $3 trillion in loans starting to implode at a faster rate. Why commercial real estate will plunge FDIC insured banks into closure. Bought for $415,000 per apart
     
  2. Terral
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    Terral Terral Corp CEO

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    Hi Neubarth:

    Never underestimate the Obama/U.S. Treasury/FED-Bernanke ability to monetize this debt (story) and place the burden on our children and grandchildren. What is another $3 Trillion when we already owe more than 100 Trillion?? :0)

    GL,

    Terral
     
  3. waltky
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    waltky Wise ol' monkey Supporting Member

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    Gubmint gonna do away with Fannie Mae?...
    :eusa_eh:
    Easing U.S., Slowly, Out of Home Financing
    February 28, 2013 - Can the American mortgage market ever function again without Uncle Sam guaranteeing that lenders will be repaid?
     

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