Experts are warning that there is a looming real estate collapse that will “put 2008 to shame” and cause a MASSIVE financial meltdown!
There is serious cause for concern within the commercial property market and the many US banks that are stuck with bad loans for those properties.
According to famed investor Charlie Munger, “A lot of real estate isn’t so good anymore. We have a lot of troubled office buildings, a lot of troubled shopping centers, a lot of troubled other properties. There’s a lot of agony out there.”
We’re looking a situation now where the commercial assets the banks gave loans for are not worth nearly as much as they once were and if lenders default we could see widespread bank failures – which we’ve already witnessed they are very susceptible to.
There are three main reasons for this, with the first being the large increase in remote jobs spurred on by the pandemic which means the office space is in less demand.
At the same time, the rising interest rates have forced new purchases to grind to a complete HALT as the increased mortgage prices simply don’t make sense.
And all of this is set to come to a head soon with more than HALF of the entire market is to refinance by the year 2025 – where they will be hit with much higher mortgage rates and be forced to default on them.
Watch the video here to see how this could be the final nail in the coffin for a fragile Biden economy!