Friday, Oct 23, 2009

The latest bubble is about to burst, but this time it's in the commercial market.

Fortune via cnn: 3 signs of the next real estate collapse

When the FDIC closed Chicago's Corus Bank last month, it may have signaled the beginning of the next shock to the banking system: commercial real estate defaults.
Corus, whose balance sheet was larded with bad construction loans, is just one of many banks that have a slew of this debt on their books. Refinancing the $2 trillion in commercial mortgages will be tough, as property values decline

Posted by mark @ 10:14 AM (374 views) Add Comment

4 Comments

1. alan said...

@ Mark
More backing for this assertion...today..."Real estate investor Peter Duncan, who negotiated the nation’s biggest property deal of the year in buying Manhattan’s Worldwide Plaza, is now in charge of a skyscraper that’s 40 percent empty".

http://www.bloomberg.com/apps/news?pid=20601109&sid=aJG1.l7fPiik

Friday, October 23, 2009 11:53AM Report Comment
 

2. mark said...

wasnt peter duncan from blue peter? wow he changed his job!! lol

Friday, October 23, 2009 12:18PM Report Comment
 

3. drewster said...

Have a look at recent news about Robert Tchenguiz or Simon Halabi. Both have huge investments in commercial property in the UK. Both are in deep trouble.

Friday, October 23, 2009 02:26PM Report Comment
 

4. crunchy said...

Any comments Sir Alan?

Friday, October 23, 2009 05:21PM Report Comment
 

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