Thursday, November 20, 2008


Not pretty there, either.

Nov. 20 (Bloomberg) -- Mortgages on offices, shopping malls and hotels that were based on projections of soaring income during the real estate boom are roiling the bond market.


``These kinds of loans written during the height of the real estate boom could be the first to have problems,'' said Christopher Sullivan, who oversees $1.3 billion as chief investment officer at United Nations Federal Credit Union in New York. ``They were underwritten with outlandish expectations on rents and property appreciation that will turn out to be fiction.''

Probably just all the loans ACORN forced the banks to make to poor and minority commercial real estate developers.