Not only does that ratio have a distance more to fall, but there’s evidence rents are falling too. If you’re a bank, that’s not such good news. It means that the downward adjustment will go further than just matching historical ratios.
We can expect this to put further pressure on the banking system.
References:
http://www.calculatedriskblog….
http://money.cnn.com/magazines…
http://en.wikipedia.org/wiki/H…
http://krugman.blogs.nytimes.c…
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