'Pretend and extend' time
Brisbane Times reports: Worried that you have less to worry about during the current surge of economic optimism? The US commercial property market is here to help.
Just when there are signs of some sort of life in the US housing market, reports are rapidly multiplying of looming and current disasters in commercial property involving trillions of dollars.
Bloomberg is quoting a report by one New York analyst that some $US2.2 trillion ($2.7 trillion) worth of US commercial properties bought or refinanced since 2004 are now worth less than their original price with $US1.3 billion of them having lost their equity component.
But so far only about $US124 billion of commercial property has fallen into default or worse, according to the Real Capital Analytics report.
''The phrase 'pretend & extend' has recently entered the vernacular,'' wrote the author.
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Posted by: Nina Turner