Half of commercial real estate mortgages to be underwater by year’s end

Article Summary:

The real estate market is going from bad to worse. By the end of 2010 about half of all commercial real estate mortgages will be underwater.

According to Elizabeth Warren, the chairperson of TARP, The majority of the mortgages in danger were made by 2,988 midsized banks. She believes the economy will face another very serious problem and “things are unlikely to return to normalcy in 2010.”

Elizabeth also believes the government should “pull the plug” on mortgage lenders Fannie Mae and Freddie Mac.

http://hnsummary.com/2010/03/30/half-of-commercial-real-esta...

A thought occurs: Congress should stop incentivizing people to buy homes they can't afford.