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Clusterstock cheerfully lists ten financial bubbles to watch out for. Some are relatively minor, with the biggies being China and commercial real estate (which is already popping.) For example, half a trillion in shopping center loans originally financed at low rates comes due in the next three years. Many will not be able to [...] If you believe all the negative hype about commercial real estate, i’ve got a few thousand vacant office buildings to sell you Because really, CRE will be just fine, so stop your sobbing all you whiny-whiners, says Benjamin D. Over at Zero Hedge Clusterstock Green Street Advisors has put together an excellent deck [slide show] showing the coming mess for commercial real estate. Bottom line: A 35-40% decline in commercial real estate values should be “right.” And that’s if the market doesn’t overshoot. The big problem in CRE is deals were funded using excessive valuations and high [...] Commercial real estate will be the next domino to fall. Portfolio explains why. Lending standards fell, starkly. Or as I prefer to see it, they were thrown out of the 60th-floor window of that gleaming office tower in downtown Atlanta/Phoenix/New York/San Francisco/insert your city here. The gap between the cost of debt servicing [...] |  | ||||
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