Moody’s estimates US banks will have to write off about $470B in the rest of 2009 and 2010. If Moody’s estimates the writeoffs at that level, you can bet on losses being at least twice that after it’s all said and done. After all Moody’s want to rate instruments and it has to stay on the good side of the big banks and Timid Tim to do that…
Hat tip to Zero Hedge.
New York, March 19, 2009 — Commercial real estate prices as measured by Moody’s/REAL Commercial Property Price Indices (CPPI) decreased in January by 5.5% from the previous month. The January decline was the largest in the history of the index, which has followed commercial real estate prices since December 2000.
Prices are now down 19.1% from a year ago and 15.4% lower than they were two years ago. They have declined 21.0% from their peak in October 2007. Prices have nominally returned to the levels they were in the spring of 2005, says Moody’s.
