Countering Krugman's analysis, Peter Wallison argues that the crisis was caused by the bursting of a real estate bubble that was supported largely by low or no-down-payment loans, which was uniquely the case for U.S. residential housing loans.Peter J. Wallison, “Dissent from the Majority Report of the Financial Crisis Inquiry Commission,” (Washington, DC: American Enterprise Institute, January 2011), 18, www.aei.org. Also, after researching the default of commercial loans during the financial crisis, Xudong An and Anthony B. Sanders reported (in December 2010): "We find limited evidence that substantial deterioration in CMBS [commercial mortgage-backed securities] loan underwriting occurred prior to the crisis."Sanders, Anthony B. and An, Xudong, Default of CMBS Loans During the Crisis (November 29, 2010). 46th Annual AREUEA Conference Paper. Available at SSRN: https://ssrn.com/abstract=1717062 Other analysts support the contention that the crisis in commercial real estate and related lending took place after the crisis in residential real estate. Business journalist Kimberly Amadeo reports: "The first signs of decline in residential real estate occurred in 2006. Three years later, commercial real estate started feeling the effects.Amadeo, Kimberly, "Commercial Real Estate Lending" in News & Issues-US Economy(About.com, November, 2013), http://useconomy.about.com/od/grossdomesticproduct/tp/Commercial-Real-Estate-Loan-Defaults.htm Denice A. Gierach, a real estate attorney and CPA, wrote:...most of the commercial real estate loans were good loans destroyed by a really bad economy. In other words, the borrowers did not cause the loans to go bad, it was the economy.Gierach, Denice A., "Waiting for the other shoe to drop in commercial real estate," (Chicago, IL, The Business Ledger, March 4, 2010)
