Monday, August 02, 2010

Is Commercial Real Estate on the Verge of Crashing? (Graphs)


The delinquent unpaid balances for Commercial Mortgage Backed Securities continues to rise.

The delinquency rate has now risen about 7 percent to 7.87 percent. Above 7 percent can be considered the level where a real crash can take place at any time.

Realization of this dire state of affairs could cause the stock market to take a major tumble. It would also be the point to get long term bullish on the stock market.

Having said this, I would expect a significant drop if this occurs. I would expect this drop to last more than a few days, more likely several weeks, as the market unwinds and fear takes over.



Source http://www.realpoint.com

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Original content Bob DeMarco, All American Investor