Banks at a Crossroads Is Your Money Truly Secure -3

Is Your Money Truly Secure?

We need to do some critical thinking:

The Next Crisis to Drop on Banks Will be Commercial Real Estate and Zombie Corporation Loans.

1.) $1.5 trillion Debt Crisis about to hit the Real Estate Market: A crisis is building in the commercial real estate market, with $1.5 trillion in loan maturities coming due over the next three years. Many of these loans will turn into defaults and foreclosures in 2023, 2024, and 2025 as landlords hand back the keys on failing office buildings and retail strip centers. Morgan Stanley estimates that commercial property values could fall as much as 40% in the process. This commercial debt crisis and credit crunch will have massive knock-on effects on the US Economy and Housing Market, with aggregate real estate demand declining as deflationary forces overtake the economy. Small banks are about to get crushed by Defaults This is especially true for small banks, who hold $1.9 trillion in commercial real estate loans in 2023, which is more than two times the number of large banks. Even more concerning, small banks have been increasing their exposure to commercial real estate loans over the last five years. https://www.reventure.app/blog/commercial-real-estate-defaults-are-increasing-is-this-t he-next-crisis Commercial real estate market facing price crash that rivals 2008 financial crisis Complicating the matter is the fact that small and regional banks are the biggest source of credit to the $20 trillion commercial real estate market, holding about 80% of the sector's outstanding debt. Regional banks were just at the epicenter of the upheaval within the financial sector, and there are concerns that the turmoil could make lending standards drastically more restrictive.

https://www.foxbusiness.com/economy/commercial-real-estate-crash-looming-us-ec onomy