Back Up from the Ledge Deutsche Bank

Deutsche Bank's Richard Parkus recently said the following about commercial real estate:

"Rents will be back to where they were in 2017," Parkus said. Building prices also will take six to eight years to recover, he said.

Now, Parkus' colleague Karen Weaver, global head of securitzation research for Deutsche Bank, said this about the residential market:

"Currently we estimate that 14 million homeowners have negative equity. However, based on our home price forecast, as prices continue to fall we think that number could reach 25 million, or 48% of all mortgagors."

The depressing Kool-Aid must be flowing out of the water fountains at the Deutsche Bank offices these days.