The Big Bubble of CRE is starting to pop.
Of course, we are being reassured by Jerry at Da Fed that this is strictly a Regional Bank problem ant there is no threat to the TBTF Banks. Which of course really means the TBTF banks are in the deep doo doo. Just ask Deutche Bank over in Germany.
$1T in distressed loans coming due over the next year is not just a regional bank problem, even if most of those loans are nominally on the books of those banks. When those banks have to shutter their doors and go into bankruptcy protection, their stock price plummets and who aare the shareholders of those banks? You guessed it, the TBTF Banks themselves or their shareholders. Everybody starts to need to borrow money to cover margin calls and nobody's got money to lend. The whole shit show collapses in contagion gone wild.
OK, granted that is a Kollapsnik Wet Dream, it probably won't get quite that bad. It's nott gonna be a minor ripple though either.
https://www.foxbusiness.com/economy/commercial-real-estate-foreclosures-jumped-march-trouble-looms
Commercial real estate foreclosures jumped 117% in March as trouble looms
RE
Commercial real estate foreclosures jumped 117% in March as trouble looms
Started by RE Apr 18, 2024, 06:59 AM
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