Although the commercial mortgage market has managed to weather the first front in economic storm, many experts feel that it may be next in line to experience a similar problem. Much of the focus has not been on commercial mortgages but banks are finding that these may start to go into default as quickly as consumer mortgages. Experts are stating that rising costs and the lowering of the value of the US dollar are to blame for many commercial mortgage dangers, and the problems may get worse. ”We don’t know where we are with the problem because the banks don’t really know what they have [on their books],” pointed out economist Peter Morici, a business professor at the University of Maryland in College Park, Md. “There’s some spin, and there’s some variability in the quality of their balance sheets.”Bank of America boss Kenneth Lewis soberly warned this week that “it’s too early to strike up the band and say that happy days are here again.”"Things are still very ugly and worsening in the housing market,” said Nouriel Roubini, an economics professor at New York University. “Things are ugly in financial markets and things are getting ugly in the real economy.”
Related reading: Commercial Mortgages
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