Elizabeth Warren: Half of Commercial Mortgages to Be Underwater
I am a *huge fan* of Elizabeth Warren. She is one of the few people not trying to sugar coat this mess and do a lot of hand waving. We need more people that speak truth to power, and to provide honest assessments.
Half of Commercial Mortgages to Be Underwater: Warren
Published: Monday, 29 Mar 2010 | 7:04 PM ET
By the end of 2010, about half of all commercial real estate mortgages will be underwater, said Elizabeth Warren, chairperson of the TARP Congressional Oversight Panel, in a wide-ranging interview on Monday. “They are [mostly] concentrated in the mid-sized banks,” Warren told CNBC. “We now have 2,988 banks—mostly midsized, that have these dangerous concentrations in commercial real estate lending." As a result, the economy will face another “very serious problem” that will have to be resolved over the next three years, she said, adding that things are unlikely to return to normalcy in 2010.
[if the video does not show up, find it here]