This is the second wave of the mortgage crisis, one that was predicted by the liberal economists who inhabit the blogosphere.
This is the second wave of the mortgage crisis, one that was predicted by the liberal economists who inhabit the blogosphere. It's unlikely that we'll see a sustained economic recovery until after this shakes out:
By the end of 2010, about half of all commercial real estate mortgages will be underwater, said Elizabeth Warren, chairperson of the TARP Congressional Oversight Panel, in a wide-ranging interview on Monday.
“They are [mostly] concentrated in the mid-sized banks,” Warren told CNBC. “We now have 2,988 banks—mostly midsized, that have these dangerous concentrations in commercial real estate lending."
As a result, the economy will face another “very serious problem” that will have to be resolved over the next three years, she said, adding that things are unlikely to return to normalcy in 2010.
We've already discussed here some of the reasons why Larry Summers would make a terrible choice for head of the Federal Reserve. Sen. Elizabeth Warren, among others have signed a letter backing his rival for the position, Janet Yellen instead, and this Sunday, her colleague Sen. Diane Feinstein voiced her support for Yellen as well. Read more...