CHICAGO (AP) -- Capmark Financial Group, one of the nation's largest commercial real estate lenders, has filed for bankruptcy protection amid mounting bad debt.Expect to see more of this. Commercial real estate was expected to get hammered, just as residential real estate has been. It's been something of a mystery as to when when it would begin. Apparently, today's the day. Residential real estate is presently being propped up by FED purchases of mortgage debt. It is not even halfway through its fall. Now it appears commercial real estate is beginning its slide. I do not know if the FED is as interested in propping up this sector, but if it does not, it, too, is in for a gruesome fate, and might possibly meet it very quickly. If the FED does decide to prop up both at the same time, it will turn into quite a burden. It could prove to be unbearable. It would not surprise me if this didn't trigger the dreaded next leg down on Monday morning. Hat tip: zeno, at Vox Popoli.
Sunday, October 25, 2009
Another Shoe Drops