If landlords can’t pay back loans on office buildings, the lenders will suffer. Some banks are trying to avoid that fate.

If landlords can’t pay back loans on office buildings, the lenders will suffer. Some banks are trying to avoid that fate.

Hard times are likely ahead for a lot of people. Mind your expenses and plan to save where possible just in case. Apologies for having a doomer outlook; I’m very cynical about capitalism, especially in the USA.

    • protistEnglish
      2·
      6 months ago

      I can’t help but notice you linked a story from over three years ago. I’m not arguing with any of the problems identified by the researchers in that article, but weakness in the commercial real estate market has been happening for over four years. What happened in 2008 took everyone by surprise. What’s happening now is on everyone’s radar and mitigation efforts have been happening for years.

      The article in the post even talks about the financial institutions identified as over exposed in your article getting rid of these assets to reduce their exposure.

      • theparadox@lemmy.worldEnglish
        1·
        6 months ago

        I agree they’ve been trying to mitigate this but as I understand it things are quite precarious regardless. It’s not always possible to mitigate a disaster you see coming even if you try your best to prepare for it.

        There has been more talk of it since then - that article just was the only concrete & most reputable source I could think of at the time and I didn’t want to turn a post into a research project.

        Anyway, while there is more awareness of the issue it is, more or less, the same shady greed-driven risky behavior and nonsense that happened with home mortgages except its commercial mortgages and they’ve seen it coming.