Posted on August 20, 2009 by Adam Pichette

After the residential real estate bubble burst at the end of 2007, banks were shattered and drowned by bad mortgage loans that were defaulted on and ultimately brought down some of the largest financial institutions in the United States. Clearly the fact that these banks and financial institutions had the majority of their assets in these “troubled mortgages,” was the main reason that they suffered so dearly. One could assume, and only hope, that if given the same opportunity, these institutions would have been better diversified and would not have fallen so hard. Well is there a situation brewing right now that could have a similar effect on banks and U.S. Business alike? Well anyone who watches CNBC or reads the Wall Street Journal has likely already been alerted to the potential (some feel inevitable) commercial real estate crash that seems to loom right around the corner. Hopefully the same banls that narrowly escaped the housing bubble are better prepared for this next wave of a real estate crash. Hopefully they don’t make the same mistake twice!