This is well worth reading, see the link below for the full article;
Even as the economy shows signs of recovery, a government watchdog is warning that another financial crisis is coming round the bend -- and that the Treasury Department and financial regulators are not prepared to deal with it.
"There is a commercial real estate crisis on the horizon, and there are no easy solutions to the risks commercial real estate may pose to the financial system and the public," says a report issued Thursday by the Congressional Oversight Panel, the bailout watchdog led by Harvard Law professor and middle-class advocate Elizabeth Warren.
"The Panel is concerned that until Treasury and bank supervisors take coordinated action to address forthrightly and transparently the state of the commercial real estate markets -- and the potential impact that a breakdown in those markets could have on local communities, small businesses, and individuals -- the financial crisis will not end."
To read the full article, go to http://www.huffingtonpost.com/2010/02/11/commercial-real-estate-wa_n_458092.html?view=screen
Elizabeth shares the following stats:
• $1.4 trillion in Commercial Real Estate Debt coming due in the next 5 years;
• 53% of these assets are underwater;
• The top 20 banks hold 79% of their capital risk in this Asset Class.
Make sure you read all of Elizabeth’s report.
Meagan Hill is a Commercial Specialist at Windermere Real Estate servicing the Jackson Hole WY and Teton Valley ID markets, and Principal of kingswood co., llc providing Project Management consulting services.
For further information, contact Meagan at (307) 734-7325 or email@example.com