No Light at the End of the Tunnel
March 30, 2010 at 9:17 AM Leave a comment
“By the end of 2010, about half of all commercial real estate mortgages will be underwater, said Elizabeth Warren, chairperson of the TARP Congressional Oversight Panel, in a wide-ranging interview on Monday.
“They are [mostly] concentrated in the mid-sized banks,” Warren told CNBC. “We now have 2,988 banks—mostly midsized, that have these dangerous concentrations in commercial real estate lending.” As a result, the economy will face another “very serious problem” that will have to be resolved over the next three years, she said, adding that things are unlikely to return to normalcy in 2010.
Projections are that about half of all homeowners will be underwater by the end of this year too so the ripple effect of all this is going to be huge. Seems to me the worst is yet to come.
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