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Tuesday, March 04, 2008

The next shoe to drop: commercial real estate

According to Wall Street Journal, Goldman analyst expects 1st quarter write-downs of investment banks in their exposure to commercial real estate would reach $7.2 billion. They hold a total of $141 billion at the end of last year. The write-downs will be much bigger if incoming data confirms a deep recession.
 
[Chart]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
spread is rising sharply...