Beware!
The banking system made mucho loans on commercial real estate too, financing them with mortgage-backed securities. Since late last year, that market has been grinding to a halt. A glut of “for rent” signs is appearing in, for example, Sacramento.
The banking system/real estate bubble inflated in more directions than just residential real estate. Commercial properties have been generous to owners for about 10-12 years now, but the boom is over.
Some research shows that, while real estate has periods of 10-50 years where it cycles high and low, overall it simply keeps up with inflation.
5:42 pm on January 29, 2008 Email Michael S. Rozeff
