I've been writing about the coming commercial real estate crash for a little while now. Here is a news story talking about the bankruptcy of General Growth, the second largest U.S. mall owner. This is the largest commercial real estate bankruptcy in American history. And I believe that this may be the beginning of what may precipitate the next crash/wave down in stocks to the 400-600 level on the S&P500.
Further, there was a piece on The Disciplined Investor today called "Commercial Real Estate Time Bomb" which indicated that "we are on an unstoppable trajectory toward higher foreclosures and exploding delinquency levels." Below is a chart of commercial real estate delinquencies in the U.S. (Click on picture to enlarge.)
