Roubini says that 400 Banks will Fail

on 09 7, 2010

More than 400 US Banks Will Fail: Roubini

Here is an article from CNBC.  I have repeatedly mentioned the banks.  An interesting point that Roubini makes is that the large banks are backstopped but the small to mid sized banks are not.  These small banks have the most risk to commercial property loss.  We know that commercial builders are still building offices because they have the loans locked up to complete the job.  I drive by a gorgeous brand new office building that has been empty for over 1.5 years.  There are two new construction office buildings, with for sale/lease signs in front, that are being built down the street from this existing place.  I don’t see the rationale of building unless they are pre-sold.  I guess they see real estate booming in the next five years.  Quite frankly, I think we will be lucky to see the turn in five years.

Anyway, here is the article….enjoy!

http://www.cnbc.com/id/38986777

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