I wish I had something pithy, clever, funny or profound to say about this chart. I don't.

Except that I told you a long time ago. that this would happen And, contrary to the dog poo you've heard about this being the 7th or 8th inning, the home team hasn't come to bat yet.

And, for those of you in REITs ("Re-allocating Equity and Income Trusts" - that is your equity and income being re-allocated to someone else), "The pain, Boss, the pain".

Local and regional banks made a lot of money lending to residential and commercial builders, not buyers. And I do mean "made". Simple deductive reasoning, that which is lacking almost everywhere right now, suggests that major bank and their ugly step sisters, the I Banks, made A LOT of bad home loans, securitized them and sold them off. This inflated home prices beyond all imagination, someone woke-up and figured it out, buyers stopped buying, lenders stopped lending, no more HELOCs, home prices fell, developers failed, loans were written off, the economy took a dive, consumer's disposable income dropped and consumer demand dropped.

What did I forget? Oh, yea, that's right, RETAIL and COMMERCIAL building continues, financed primarily by local and regional banks. Let's not forget the commercial REITs. And just what happens when consumption drops, the supply of retail and commercial space increases and retail and commercial building continues? Failed new projects, declining rents and a general failure to meet the rosy projections that tempted you into these investments in the first place. This will result in a rather pronounced "headwind" for commercial and retail property investments. And soon.

Of course, you can follow the general advice of investment professionals and "hang in there for the long term". That's rich. Buy high, ride it down, hang in there for years and, then, you are finally back to even many years in the future with an aging building that has been vacant for years.

There aren't too many places to hide from a "general risk re-pricing" (I call it deflation, but what's in a word?). One place might be in all of the retail and commercial space that will be very vacant very soon.