What is the future CRE crash ? CRE is an acronym for commercial real estate. A commercial real estate crisis is coming down the pipe if certain financial analysts and economists are correct in their predictive studies. Serious warnings are being issued about a near future financial crisis in real estate property due to a problem with refinancing of real estate mortgages which were issued "en masse" in a similar fashion as when the home mortgages were being almost given away without question at subprime rates. We now know what happens when overvalued properties are bought on speculation during times when home prices are rising at rates of upwards of 10 percent yearly which is way out of line with historical data about private home property or privately owned real estate appreciation.

If the future CRE crash does happen it will be for similar reasons according to expert economists. Real estate speculators who bought commercial mortgages will soon be looking to refinance those mortgages but will the investment bankers who sold them the real estate mortgage contracts be able to fill the demand ?

The Future Refinancing Crises in Commercial Real Estate report is a report that lays out the magnitude of the problem and goes on to make assumptions of the implications of the upcoming CRE mortgage refinancing situation. The report also contains an estimate value of just how much money is at stake here and finally it talks about the liquidity problem or "equity deficiency and losses from maturity defaults" that the crisis might bring about.

This report was the first of two such documents that was made public by the Deutsche Bank back in April of 2009.

Investors.com calls it the second wave of the credit crisis in an article dated August 20^th,2009. During the savings and loans crisis commercial property lost about 27% of it's value but this time around CRE is down 39% since it's peak value reached only a few years ago. The Deutsche report claims that 65% of CRE loans will fail to find refinancing because their debt will outweigh the worth of the property they purchased when the commercial real estate locomotive was running full steam.

This is a reality that has yet to happen. In the past investments in real estate were fairly secure as speculators could push forward the contract dates on these mortgages partly because liquidity existed. But times have changed and liquidity is one reason this refinancing crisis in commercial property mortgages might just come about and throw the US economy into another tailspin towards recession or even depression.

Of course what happens in the US does not necessarily stay in the US unlike the Vegas commercial goes. Economic breakdowns in the US have way of ripping it's way through the global fabric.

Of course the Fed Chairman Ben Bernanke and the other economist who consult with White House brass will defend the patriot with more printed fiat.

But will that be enough?

I think this is a serious issue that everyone should be aware of and I hope that by reading this I will have encouraged someone to research this issue more deeply.

Such a crisis can certainly not be good for private homeowners who are struggling to rebuild from the last financial tsunami.