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IPFS News Link • Economy - Economics USA

Close Attention: The collapse in commercial real estate could lead to another financial crisis!!

• Investment Watch
The coming FOMC meeting will focus on the commercial real estate problem. CRE Vacancy has been skyrocketed for the past few month and current situation is very dangerous. Nearly 16% of office space in Los Angeles County is sitting vacant as tenants close up shop or move out of expensive properties. Nearly a third of the space around up-market Playa Vista sits empty; office buildings in the Inland Empire and parts of Orange County are completely vacant. James Helsel, on behalf of the National Association of Realtors, is even more negative. He argues that this sector supports 9 million jobs and many of these are now in jeopardy. Of course, he is looking for a bailout of some kind (who isn’t?) but still he is right about emerging problems in and around the retail sector. “July 9 (Bloomberg) — The $3.5 trillion commercial real estate market is a ticking “time bomb” that may lead to a second wave of losses at large U.S. banks, congressional Joint Economic Committee Chairwoman Carolyn

1 Comments in Response to

Comment by Lola Flores
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 Bring it on!  The more the merrier, till there's nothing left to collapse but the government itself...and that will be good news!