Monday, March 8, 2010

The US commercial real-estate collapse

Generally speaking commercial property and rentals have loans one way or the other. These types of loans run over years and are either covered up directly by owners or by banks that don’t want to show the losses. Taking the loss means that it affects profits and that in turn would affect stock value.

And just as in the case of home owners there is lots of commercial real-estate that is still occupied by the renter whom is not paying for it. For the bank/owner to evict means to take the loss…

So when watching all these videos think for a moment what it means WHEN all these properties are counted and when the loans are up for renewal the coming months. And even funnier, banks continues to go out of business. They are closing down banks at a rate of 4-6 each week

The ONLY question to ask is: how long can they cover this up?

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