News Analysis
A storm is brewing in the U.S. commercial real estate market, says Charles Munger, vice chair of Berkshire Hathaway.
During an interview, the 99-year-old legendary investor told the Financial Times that U.S. banks have plenty of “bad loans” and will be vulnerable when the “bad times come” and commercial property prices crater.
“It’s not nearly as bad as it was in 2008. But trouble happens to banking just like trouble happens everywhere else,” Munger said.
“A lot of real estate isn’t so good anymore,” he added. “We have a lot of troubled office buildings, a lot of troubled shopping centers, a lot of troubled other properties. There’s a lot of agony out there.”…