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Soros predicts big drop in commercial real estate


Soros predicts big drop in commercial real estate Famed investor George Soros is reportedly
predicting a significant drop in the commercial real estate market.

A Bloomberg news report quoted Soros as telling a forum in Washington this week that
commercial real estate "has not yet fallen in value," and that some transactions
suggest that some properties "will drop at least 30 percent."

The report noted that commercial real estate values have already fallen 30 percent
since 2007 because the credit crunch has led to a slowdown in many such transactions.

The investor was also quoted as saying that President Obama should have moved
to recapitalize banks "the right way" by creating "new banks on top of these old banks."

Soros made news elsewhere this week with a Wall Street Journal op-ed piece in
which he called for tight regulation of credit default swaps, which he blamed
for causing much of the credit crisis. He called them "toxic instruments" that
should only be owned by people who hold the underlying bonds.

http://www.nasdaq.com/newscontent/20090327/Soros-predicts-big-drop-in-commercial-real-estate.aspx