The credit collapse continues

Mike Shedlock publishes an excellent weblog on economic trends. His posts are always detailed, with lots of links to primary sources, and his writing is clear and pleasant to read. Still, his subject matter is often tedious and not often tittilating. Here’s an excellent example, a post that tracks the unfolding collapse at American Home Mortgage, which could rival the Bear Stearns collapse in importance.

As far as the depth of the coming collapse, the post contains one worrisome aside:

I happened to talk to a commercial real estate developer going back some 30 years …. Somehow we got to discussing the Florida condo situation and other real estate woes when all of a sudden he exclaimed, “Commercial real estate is through”. I asked him why and he told me about cycles: Residential followed by commercial followed by industrial, and how they peak in that order. He went on to tell me about how Sam Zell marked the top in commercial and there was at most one year left or so in industrial. The developer I was speaking to “cashed out” over the past few years.

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