Yeah, I don't disagree that these loans are going to cause trouble for a long time, but I disagree with the headline implying these banks can't meet their deposits.

I think that, over the next decade, many of these commercial buildings will undergo retrofits (say to turn them into housing) which will help the owners / lenders recoup much of the costs.

[–] Ghostalmedia@lemmy.world 1 points 9 months ago

IMHO, I need context for the risk numbers they’re throwing around. I don’t have enough information to make a call one way or the other.

What should a healthy bank, that is doing right by its clients, have in reserve? What does the trend line for reserves look like? What is going to happen if banks are sitting on a bunch for foreclosed office buildings that are cheaper to demolish than to redesign into housing? If banks take a giant unexpected loss on a formerly safe investment, what does that do to the other customers using other financial products?