Heard on the Street - WSJ.com
After suffering a beating from their exposure to home loans, banks and securities firms are about to take their lumps from office towers, hotels and other commercial real estate. And the losses could last longer than those from the subprime shakeout.
This isn't exactly new news, but I just realized that I've lost track of how many shoes have dropped and how many more we have to go.
1) Residential real-estate (in some markets)
4) ABCP, CDOs, SIVs
5) Monoline insurers
6) Auction-Rate Securities and munis (in progress)
So, CRE is next I guess. Has the retail shoe already dropped? Prime mortgages haven't dropped yet, right? Stock market not so much. LBO debt still to come.
I didn't realize the economy had so many shoes. Did I miss any? Oh yeah, corporate bond defaults. CDS. Other derivatives? China? Commodities?
I hope somebody is keeping track of all these shoes.