Listen to this interview with Mort Zuckerman at Bloomberg News. He makes a couple of key points I want you to notice:
First, $3.5 million in local commercial real estate debt is coming due in the next few years there’s not enough revenue being generated to pay this debt.
This is going to expose local banks to a tremendous amount of risk.
Second, what got us into this mess? For starters: Excessive leverage. Credit default swaps.
Fasten your seat belts folks, it’s going to be a bumpy ride.