Economist: Commercial real estate ‘is really falling apart, there's a lot of pain’

Commercial real estate has been through quite the transformation ever since the pandemic. With companies and financial institutions heavily invested in commercial real estate assets while businesses and workers move to more remote and hybrid positions, some on Wall Street are sounding the alarm bells as to how damaging this could eventually be to the stock market.
A. Gary Shilling & Co. Founder and President Gary Shilling joins Yahoo Finance to discuss how much of a risk commercial real estate investments are for markets.
"It's not enough to sink the ship. I mean, if you look at the subprime mortgage fiasco in 2008, it gave us the most serious recession since the 1930s, and all its ramifications," Shilling affirms. "I think now, the economy is vulnerable. This is... certainly a negative. You've got a lot of other things indicating that, inverted yield curve, leading indicators being weak..."
He continues: "This could contribute to economic weakness, but it isn't going to give us a global collapse, at least as far as we can see right now."
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