Commerical real estate losses to slam GE Capital in 2010
Editor’s Note: A 13% drop in commercial real estate may be too conservative still for 2010. I keep hearing very bullish comments from analysts but we still have interests at records lows and that can not go on forever. Unemployment did notch down because of seasonal jobs but that still is not a permanent change and some of that gain was from the birth / death adjustments as well so I am not convinced we are out of the woods yet.
Commercial real estate losses have reached out their anti-Midas Touch and tapped the General Electric Co. The financing arm, GE Capital, is looking down the barrel of $7 billion in unrealized losses for 2009. The company announced on its annual investor day that GE Capital is anticipating a 13% drop in next year’s commercial real estate values.