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Schrödinger's Flat: How Big a Problem is Commercial Real Estate?

Many Happy Returns

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Potential Impact of Commercial Real Estate Distress on the Banking System

This chapter explores the potential consequences of commercial real estate distress on the US banking system, with a focus on the disproportionate exposure of small banks to commercial real estate lending. It discusses the current state of commercial real estate loans, including high delinquency rates and negative equity. The chapter also highlights the potential contagion risk beyond US banks, particularly in Europe.

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