I find Elizabeth Warren more credible than anyone else in President Obama's administration, so I believe her when she says that half of all commercial real estate mortgages will be underwater by the end of 2010. What happens to our economy if Ms. Warren is accurate? I am personally seeing a lot more empty commercial real estate in my neighborhood these days.
“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.
You can watch Ms. Warren's full interview with CNBC by clicking this link.
Source: CNBC ; Plus a big fat thanks to Stazel One who provided this news tip.
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