It is time to learn about 'CMBS' securities

Commercial Mortgage Backed Securities (CMBS) is a type of Commercial real estate first mortgage debt. In a CMBS transaction, many single mortgage loans are pooled and transferred into a trust which issues bonds. This market has raised a huge amount of capital for the Commercial real estate market in the last five years. As you know, commercial real estate includes office buildings, retail centers, and apartment complexes. These bonds are largely owned by Financial institutions globally. Last week two of these loans defaulted. These CMBS loans were for a retail complex and a hotel complex. Both of these projects are in big trouble.
Wall Street has been following the CMBS market for the last few months wondering when the first shoe would fall. These two defaults have now created another market in 'absolute freefall'. The 'IYR' (an index of real estate investment trusts) was down 10% today.

Random thoughts...with all the talk of the next depression, the automobile bailout and unemployment, there must be individuals who are doing just fine. Last night I had dinner with a CPA whose business is booming....his clients JPMorgan and Bank of America recently purchased major financial firms who certainly need a good accountant (Countrywide Credit, Bear Stearns, WAMU)....you must know someone who is doing well today...maybe they will go shopping..