Question by Sean: How bad will the commercial real estate crisis be that starts next year?
A trillion dollar commercial real estate crisis will begin to unfold in 2010, when short term loans must be refinanced, yet commercial property values have plummeted.
As many as 500 regional banks may fail as commercial loans default, and the FDIC only has 10 billion left to cover insolvent banks. Compounding this Deuthsche Bank forecasts that 48% of home mortgages will owe more than the home is worth by the end of 2011.
Answer by Alfred E. Bush
Looks like Obama will be cleaning up Bush’s mess for a while longer.
What do you think? Answer below!