Tom Barrack on the Crisis in the Commercial Real Estate Market. By. Tracy Alloway. and. Joe Weisenthal. April 6, 2020, 1:00 AM PDT. :37
Did real estate billionaire Tom Barrack say the U.S. commercial-mortgage market is on the brink of collapse and predicted catastrophic economic consequences if banks and government don’t take prompt action to keep borrowers from defaulting?
Lots of things are possible. And anyone is free to speculate on the future without fear of contradiction for the simple reason that no one can foretell the future.
The point is a valid one as seen from the viewpoint of someone whose money is tied up in real estate. Cramer on CNBC this morning made the comment that at some point people are simply going to not pay their rent, but also, not vacate their premises. You could extend that same thought too mortgage payments, and in retrospect, that’s exactly what happened in the 2007 crisis. In 2007 it caused banks to go sneakers up. BUT, walking away from mortgages occurred over a two or three plus period of time, starting in 2006, and extending well into 2008, perhaps 2009.
I suspect the coronavirus’ impact will be shorter than that. But it could be sharper.
Who knows? Nobody can foretell the future. Could it happen? Yes. Will it” That’s the question, isn’t it.