Biden's policies, including a new student loan forgiveness plan and increased government spending, may have significant implications on various sectors. The real estate market is facing challenges as developers are struggling to repay loans due to a market correction, potentially leading to foreclosures and fire sales. Higher interest rates could jeopardize the 'extend and pretend' strategy, causing more sponsors to give up. This situation could stress regional banks that lent to commercial real estate developers. Additionally, the government's borrowing costs will rise if rates remain high, with a substantial amount of debt needing refinancing at higher rates. This will grow the government's financing expenses significantly, making any downward pressure on rates unlikely due to the immense debt burden.