Changes

The speculative [[housing bubble|real-estate bubble]] went far beyond residential homes, it infected as well all kinds of commercial real estate,<ref>Commercial real estate lending is more specialized than Fannie Mae lending, as much commercial property tend to be one-of-kind investments; finding comparable properties to establish appraisal value can be very difficult and complicated. Hence, commercial rates tend to begin at 10% for the best credit customers with much shorter terms and balloon payments.</ref> such as office buildings, shopping centers, apartment complexes, hotels, casinos and even empty lots. People bought high expecting to  sell higher, and were stunned when the market collapsed. People who loaned money to real estate firms were confident of a 20% return, but more likely lost 25%. The value of office buildings plunged 43% after the peak in Nov. 2007.  Most investors who bought in 2007 probably lost all their investment.

The speculative [[housing bubble|real-estate bubble]] went far beyond residential homes, it infected as well all kinds of commercial real estate,<ref>Commercial real estate lending is more specialized than Fannie Mae lending, as much commercial property tend to be one-of-kind investments; finding comparable properties to establish appraisal value can be very difficult and complicated. Hence, commercial rates tend to begin at 10% for the best credit customers with much shorter terms and balloon payments.</ref> such as office buildings, shopping centers, apartment complexes, hotels, casinos and even empty lots. People bought high expecting to  sell higher, and were stunned when the market collapsed. People who loaned money to real estate firms were confident of a 20% return, but more likely lost 25%. The value of office buildings plunged 43% after the peak in Nov. 2007.  Most investors who bought in 2007 probably lost all their investment.

For example, in 2006 at the top of the market Tishman Speyer Properties and BlackRock Realty invested $5.4 billion to buy the largest apartment complex in the United States, in downtown New York City. Stuyvesant Town and Peter Cooper Village, with 110 buildings and 11,227 apartments housing median income families. The plan was to spend billions in upgrades, and as tenants moved out, to raise the rents.  The expectation proved wildly overoptimistic, and the monthly rents collected did not cover the debt payments. In January 2010 Tishman Speyer and BlackRock turned over the property to creditors, taking a 100% loss.<ref>Charles V. Bagli, "Huge Housing Complex in N.Y. Returned to Creditors," [https://www.nytimes.com/2010/01/25/nyregion/25stuy.html?hp ''New York Times'' Jan. 25, 2010]</ref>

For example, in 2006 at the top of the market Tishman Speyer Properties and BlackRock Realty invested $5.4 billion to buy the largest apartment complex in the United States, in downtown New York City. Stuyvesant Town and Peter Cooper Village, with 110 buildings and 11,227 apartments housing median income families. The plan was to spend billions in upgrades, and as tenants moved out, to raise the rents.  The expectation proved wildly overoptimistic, and the monthly rents collected did not cover the debt payments. In January 2010 Tishman Speyer and [[BlackRock]] turned over the property to creditors, taking a 100% loss.<ref>Charles V. Bagli, "Huge Housing Complex in N.Y. Returned to Creditors," [https://www.nytimes.com/2010/01/25/nyregion/25stuy.html?hp ''New York Times'' Jan. 25, 2010]</ref>

===Misuse of Credit Default Swaps===

===Misuse of Credit Default Swaps===