E152: Real estate chaos, WeWork bankruptcy, Biden regulates AI, Ukraine's “Cronkite Moment” & more
All-In with Chamath, Jason, Sacks & Friedberg
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The Risk in the Market
There's a rumor that building owners are auctioning their properties to show the banks the low value in order to restructure their debt. The massive debt on these buildings makes them unable to generate profit. Owners have the option to hand the keys back to the bank or negotiate a debt restructuring deal. The problem is that the $3 trillion debt is not being discounted or marked as impaired on the bank's balance sheets, posing a risk in the market. The government may step in to support commercial real estate developers. Sax has been closely following this issue.
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