You would think that after AIG got their latest trillion, the banksters would be getting fat, dumb, and happy. Well, it seems that the commercial real estate market is going to test their resolve. According to that ultra left-wing investment company Apollo Management, the other shoe is about to hit. (given the number of shoes that have been dropping, the beast must be a millipede.)
The Financial Times, you know that pinko newspaper is reporting Apollo's concern that the commercial crap has not even hit the radar:
Leon Black, founder of the firm, said the extra costs of cleaning up the US banking industry could total as much as $2,000bn, putting further strain on the economy. He said the woes of the commercial property had not yet been reflected fully on bank balance sheets.
“You have the black hole of commercial real estate and that hasn’t happened yet,” said Mr Black in a wide-ranging interview on FT.com.
“There you are sitting with $4 trillion of debt and you know not all of it’s bad but a lot of it is diminished and that really hasn’t yet been addressed.”
He warned it would be 12 to 18 months before there are lasting signs of US economic recovery.
If you are interested in this topic, go here to watch his interview.
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