Trillions in Commercial and Residential RE Debt

$3.5 trillion in commercial debt is drawfed only by the $10.3 trillion in residential debt

My friend, Doctor Housing Bubble has an incredible post regarding all of the real estate debt in this country. It should be must reading for people keeping informed. The article can be found here. The good Doctor has been leading the way in finding the ‘real’ data to at during this economic downturn. A sample from this post:

There is a flip side to housing values falling which seems to be ignored since most of the mainstream rhetoric is guided by the FIRE (finance, insurance, and real estate) experts. The most obvious benefit is those looking to buy their first home don’t need to put themselves into so much debt that they risk their entire financial future for a home. The next subtle change is the amount of money diverted from housing related spending to other sectors of the economy. This last change will take time to sink into the overall economy but there is definitely a benefit of moving away from an economy highly dependent on Wall Street finance and real estate.

Doc really has been precient in his forecasting of what coming. He was the first (by about 6 months) to present the data (from the State of CA’s own numbers) why it could be seen that the state politicians were lying about the health of the state’s economy. My suggestion is to put his blog on your reading list.


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