by David Haggith
GoldSeek
According to Bloomberg the commercial real-estate (CRE) crisis is likely to be much, much bigger than what you hear most people talking about—bigger than they want to even think about. Bloomberg states that the collapse in value of CRE as people abandon office and retail space all across the nation plus the diminished value of bank reserves due to Fed tightening, and the higher rates of interest that CRE has to refinance at are likely to cause HUNDREDS of banks to crash.
To give you an example of the scale of troubles in CRE right now, one new study says that, within just four years, fifty percent of the downtown office space in Pittsburg could be empty! That’s halfway to a ghost town. As cities like Pittsburg board up that much office and retail space, more people move out of residential space, and more restaurants go out of business, so the collapse spreads.