A report released by the ratings service Moody’s states that commercial real estate values have dipped approximately 21% since it’s high in October of 2007. The report sent bank stocks tumbling as worries over future losses continue to plague the banking sector.

While commercial real estate has fared better than it’s residential counterpart thus far, the ongoing recession is clearly having a major impact. We’re seeing a big drop in commercial real estate activity across the entire country and the outlook is for further declines as the year moves forward.

Obviously this is more bad news for banks as well as for the government, which has already spent over a trillion dollars trying to fix the banking system. This will definitely hamper efforts to get private investment back into the mortgage backed securities market. Read the rest of this entry »