{"id":68316,"date":"2024-05-23T10:37:53","date_gmt":"2024-05-23T15:37:53","guid":{"rendered":"https:\/\/olduvai.ca\/?p=68316"},"modified":"2024-05-23T10:37:53","modified_gmt":"2024-05-23T15:37:53","slug":"the-incoming-commercial-real-estate-crisis-no-one-seems-prepared-for","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=68316","title":{"rendered":"The Incoming Commercial Real Estate Crisis No One Seems Prepared For"},"content":{"rendered":"<div class=\"\">\n<div class=\"mx-auto max-w-[1000px] space-y-4 text-center sm:px-[100px] mb-6\">\n<h3 class=\"title60 title-bold tracking-[-0.03em] max-sm:text-[40px] max-sm:leading-[44px]\"><a href=\"https:\/\/www.theepochtimes.com\/article\/the-incoming-commercial-real-estate-crisis-no-one-seems-prepared-for-5652423?utm_source=partner&amp;utm_campaign=ZeroHedge&amp;src_src=partner&amp;src_cmp=ZeroHedge\">The Incoming Commercial Real Estate Crisis No One Seems Prepared For<\/a><\/h3>\n<p class=\"title-normal font-source hidden text-[20px] leading-[28px] text-[#495255] sm:block sm:text-[23px] sm:leading-[30px]\"><strong>\u2018I think that there\u2019s more to come,\u2019 said Peter Earle, research fellow at the American Institute for Economic Research.<\/strong><\/p>\n<\/div>\n<\/div>\n<div id=\"post_content\" class=\"post_content !text-lg\" data-post-content=\"true\">\n<p>It has been a year since a string of U.S. regional bank failures, together with the collapse of global heavyweight Credit Suisse, caused many to fear that a major financial crisis was imminent.<\/p>\n<p>But, by the summer of 2023, the panicked withdrawals by frightened depositors largely subsided.<\/p>\n<p>In February, however, New York Community Bank (NYCB) appeared to resurrect the crisis when it announced $2.4 billion in losses, fired its CEO, and faced credit downgrades from rating agencies Fitch and Moodys.<\/p>\n<p>In what has become a familiar tale for U.S. regional banks, NYCB\u2019s share price plummeted by 60 percent virtually overnight, erasing billions of dollars from its market value, and its depositors fled en masse.<\/p>\n<p>\u201cI think that there\u2019s more to come,\u201d Peter Earle, a securities analyst and senior research fellow at the American Institute for Economic Research, told The Epoch Times.<\/p>\n<p>Underlying this year\u2019s turbulence is the fact that many regional banks are sitting on large portfolios of distressed commercial real estate (CRE) loans. according to Mr. Earle. And many are attempting to cope through a process called \u201cextend and pretend,\u201d in which they grant insolvent borrowers more time to pay in hopes that things will get better.<\/p>\n<p>\u201cThere is trouble out there, and most of it probably won\u2019t be realized because of the ability to roll some of these loans forward and buy a few more years, and maybe things will recover by then,\u201d he said.<\/p>\n<p>\u201cBut all it does is it kicks the can down the road, and it basically means a more fragile financial system in the medium term.\u201d<\/p>\n<div class=\"shortcode\">\n<div class=\"mb-4 flex max-w-full flex-col mx-auto\">\n<div class=\"post_caption border-comp-divider border-b py-4 text-[14px] leading-[18px]\">&#8230;click on the above link to read the rest of the article&#8230;<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Incoming Commercial Real Estate Crisis No One Seems Prepared For \u2018I think that there\u2019s more to come,\u2019 said Peter Earle, research fellow at the American Institute for Economic Research. It has been a year since a string of U.S. regional bank failures, together with the collapse of global heavyweight Credit Suisse, caused many to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[19512,23347,54,10096,32933],"class_list":["post-68316","post","type-post","status-publish","format-standard","hentry","category-economics","tag-the-information-specialist-series","tag-american-institute-for-economic-research","tag-bank-failures","tag-commercial-real-estate","tag-kevin-stocklin"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=68316"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68316\/revisions"}],"predecessor-version":[{"id":68317,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68316\/revisions\/68317"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=68316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=68316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=68316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}