An article in today's Wall Street Journal says it all about banks and commercial real estate. Only about 60% of loans due in the next year are covered by sufficient equity and this number is falling. Banks are keeping loans on their books to make their books look good. This is like showering and shaving on a Saturday Night and not having a date. Maybe if I take a shower someone will come to my house for a date. Maybe if I pretend that this loan will be repaid at full price, my bank will get back in good shape. OK I'll extend your loan for 90 days and maybe things will get better and you can pay it back.
The sooner reality is dealt with at all levels and in every sector of the economy,the sooner our economy will get back on track.
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