from Doug Noland's site LINK HERE FOR WEEKLY POST A MUST READ ALWAYS
"Real Estate Watch:
October 7 – Wall Street Journal (Lingling Wei and Maurice Tamman): “Banks in the U.S. ‘are slow’ to take losses on their commercial real-estate loans being battered by slumping property values and rental payments, according to a Federal Reserve presentation… The remarks suggest that banking regulators are girding for a rerun of the housing-related losses now slamming thousands of banks that failed to set aside enough capital during the boom to cushion themselves when the bubble burst. ‘Banks will be slow to recognize the severity of the loss -- just as they were in residential,’ according to the Fed…”
**How does continued fall in home values bode for both residential and commercial property values? REMEMBER one of my MAIN points, when banks BUST EARNINGS EST a NEW ONE...they recognize VERY LITTLE of the losses being hidden on or off the books....a SHAM the SPX earnings a damn sham!
There are some bright spots, don't get me wrong, but even those can be quickly swamped with the unfolding catastrophy right down the road.......so to sell a house the FHA has to take no down payment, and no credit check right?
D
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