Banks are bending over backwards to make marginal loans for virtually no interest these days. An uptick in rates and they’re screwed. I think the regulators are pushing them hard to lend because these commercial loan portfolios are gonna be worth jack fuck in five years when the square footage under leases is a third to half of what it was on January 1, 2020. They’re printing because they’re terrified the banking system is insolvent.
Banks are bending over backwards to make marginal loans for virtually no interest these days. An uptick in rates and they’re screwed. I think the regulators are pushing them hard to lend because these commercial loan portfolios are gonna be worth jack fuck in five years when the square footage under leases is a third to half of what it was on January 1, 2020. They’re printing because they’re terrified the banking system is insolvent.