Analysts are bracing themselves for a stream of highly negative news in the Commercial loans department very soon. Failing businesses who have pre-existing loans agreements and are not meeting their rent payments are causing development companies and other banks a lot of drama.
The Federal Reserve and other officials have done their best to try and cool down the problems but as the economy tumbles so to to peoples job and incomes. This is only going to make the situation worse. Like a domino effect almost all industry sectors will be affected, both commercial and industrial.
Some of the lenders are totaling up their losses but these have not been reported in the mainstream media just yet. As residential foreclosures mount up what no one realizes is that at the same time businesses have been suffering just as bad and there was a big surge in commercial property carrying organized mortgages that were sold as bonds on wall st many years ago. Before the market crashed at the end of 2008 there was allegedly $700 billion dollars in these mortgage securities and now some of them have lost as much as 40% of their value.
Officials are still tallying up all the numbers and analysts say that when these figures come out in the media it won't be pretty. It could even be the next catalyst for a downturn / sell off on the equities market again.
Those with bigger loans in the commercial industry realize that if the economy takes anther bigger hit at the end of this year (as feared), they are at a bigger risk of not only losing their business but their livelihoods as well. Time will tell.
Learn How to how to profit from future trends, and what to do to avoid pitfalls. We provide insights, strategies and opportunities to help you navigate these treacherous, unprecedented times. Join Us At http://www.forecastfortomorrow.com/newsletter.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น