Friday, February 12, 2010
http://www.allamericangold.com/
Commercial Real Estate’s Coming $1.4 Trillion Crisis
By LITA EPSTEIN – Daily Finance
In a report released Thursday, the Congressional Oversight Panel sounded the alarm bell about a potential crisis involving $1.4 trillion in commercial real estate loans that will come due between now and 2014. The panel warns that the “financial crisis will not end” because of the “potential impact that breakdown in those markets could have on local communities, small businesses, and individuals.” It is feared that when these loans come due, companies will be unable to repay or refinance them because of deteriorating conditions in the commercial real estate market. Most of these loans were made at the top of the real estate bubble in 2007 and have lost as much as 40% of their value. Nearly half are underwater — the properties are worth less than balance of their loans.
http://www.dailyfinance.com/story/investing/commercial-real-estates-coming-1-4-trillion-crisis/19353759/
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