Sunday, April 19, 2009

Have to say it again...here comes commercial real estate

The real estate bubble is about to burst all over again. Go back and read all the old news articles covering the collapse, but this time scratch the word "commercial" in front of everything.

There is a fortune to be made shorting regional banks. Too small to have powerful lobbyists, too small to be a systemic risk to the United States of America, but loaded up with commercial real estate because it is "safer." They will all burn, and we will just sit there and watch them.

I wanted to point out again that I absolutely do not wish this to happen. I am not cheering these banks to failure. I'm merely pointing out that it will happen, that nothing can stop it, and there is money to be made from it.

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