The latest report from the TARP Congressional Oversight Panel says that things may feel relatively stable right now on the commercial real-estate front now, but a time bomb primed to explode in 2011 will affect “every American.”
“Over the next few years, a wave of commercial real estate loan failures could threaten America’s already-weakened financial system,” the report says.
At special risk are the nation’s smaller and mid-sized banks, gave loans to local property buyers and developers but were never subjected to any stress tests.
The TARP panel fears “that as the damage spreads beyond individual banks that it will contribute to prolonged weakness throughout the economy. (more)
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