Will the commercial real estate bust affect the broader economy like the residential real estate bust in 2008? Why or why not?

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Will the commercial real estate bust affect the broader economy like the residential real estate bust in 2008? Why or why not?

In: Economics

4 Answers

Anonymous 0 Comments

Not as badly. The problem in 2008 was not only did it stress/break a lot of investment banks but it also heavily squeezed people who were supporting their excessive spending by doing cash out refi every several years. That slowdown in spending messed with things too.

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