Good to see our officials talking about this now. That will be the next major story along with the fallout in the retail commercial property market. With that we have seen to this point, we should assume we will see some sort of bailout program to refinance these distressed properties.
News:
U.S. commercial real estate problems could derail the country’s economic recovery later this year, a top Federal Reserve official said on Monday. “Many banks are pretty heavily exposed to commercial real estate. It is also a big part of the securitization market. So commercial real estate is one that concerns me,” said Federal Reserve Bank of Atlanta President Dennis Lockhart.
Lockhart, a voting member of the Fed’s policy-setting committee this year, said that around $400 billion of commercial real estate refinancing was hanging over the market and he was monitoring its progress with care.
“If you think of 2007 and 2008, in a negative sense, as the year of…residential real estate issues, it is possible to think of 2009 as the year of commercial real estate. That is the one domestic factor that keeps me up at night,” he told the Association for Financial Professionals after a speech.
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