Real estate billionaire Tom Barrack believes a "domino effect" of potentially catastrophic economic repercussions could be ahead, unless, banks and governments take action to prevent borrowers from defaulting, according to a report from Bloomberg.
"Loan repayment demands are likely to escalate on a systemic level, triggering a domino effect of borrower defaults that will swiftly and severely impact the broad range of stakeholders in the entire real estate market, including property and home owners, landlords, developers, hotel operators and their respective tenants and employees," said Barrack, who is chairman and CEO of Colony Capital Inc., according to the report.
What's more worrying about Barrack's remarks is his belief the effect could dwarf that of the Great Depression. These are troubling and sensitive times for financial institutions and lenders should start thinking about their options, especially when it comes to the mortgage lenders.
To learn more about Barrack's remarks, click here.