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As if the foreclosure mess weren’t enough to keep you up at night, today we’re also digesting a new report from the Congressional Oversight Panel (that’s Elizabeth Warren & Co, the TARP watchdogs) about the looming storm in the commercial real estate market. The report predicts a wave of losses, totaling $200-$300 billion, from commercial real estate loans could “trigger economic damage that could touch the lives of nearly every American.”
Here’s how the dire analysis plays out: “when commercial properties fail, it creates a downward spiral of economic contraction: job losses; deteriorating store fronts, office buildings and apartments; and the failure of the banks serving those communities.” The report reminds us that the failure of community banks would further restrict small business access to capital, just the economic recovery is occurring.
Read more from CBS News
