How huge downtown office buildings in trendy cities are about to cause...

When pols ordered the Covid lockdown, companies stopped having people come to the office.  Then after covid evaporated in late 2021 many companies realized they didn't need nearly as much leased office space, so didn't renew the leases.

After covid went away things got way worse due to the awful biden economy.  The people who do planning for companies realized things were bleak (you never heard anything about that on the evening news), and many companies abandoned costly downtown office buildings altogether.

Now many are only about half occupied.  So since mid-2020 the building owners haven't been getting the lease income they'd counted on.  And it turns out many of the developers--who borrowed the money to build these faaabulous buildings--haven't made loan payments in *two years.*  This has been widely known and discussed, but you probably never heard about any of it, cuz your "friends" in the Media didn't want you to panic, since that would cost the Dems the election.

Now, if a homeowner didn't pay the mortgage for six months, the bank would foreclose.  But with big office buildings banks don't wanna do that because they have to keep electricity on and pay for security until they sell the property.   But with the bad economy, no one is buying, so the banks have just been adding the missed payments to the loan balance.  Easy, eh?  The banks have been claiming everything is peachy.

While biden was president the Treasury department turned a blind eye to roughly 30 big banks that had loaned hundreds of millions to developers.  Regulators knew that forcing banks to mark these bad loans to market value would make many insolvent, and being good Deep State lackeys they didn't want to alarm voters while a Dem was prez.

If you follow politics you've already guessed what's about to happen.

So...If you Google "Are commercial real estate loans being refinanced" here's the top quote you'll see-- generated by AI, so Google can say they can't be blamed!  "In 2024 about $950 billion in CRE mortgages are set to "mature."

Average voter: "What's duh problem?  'Maturity' beez gud, right?"

Yeah, well...not in this case, because in this case it means the loans must be refinanced--this year.  And the problem with that is that due to low occupancy (due to the awful economy) the owners of those buildings aren't getting enough lease income to make their monthly mortgage payments.  AND...current interest rates on such loans are "200 basis points higher" than when the loans were originally made.  

As every adult should know, that's a whopping two percent higher.  And on a 30-year $400 million loan that's a LOT of money.

So these loans are supposed to be re-financed by the end of this year, and many building owners are expected to default.  Then after Trump takes office in January, the banking regulators (all Deep State) won't have any reason to hold back anymore.  And if they force banks to write off the defaulted loans ("mark to value") a lot of big banks will suddenly be insolvent. 

"Not my problem," right?  But a few of you may recall the last such major bankruptcy, of Silicon Valley Bank, and how its insolvency shook the markets.  Just two days later a second big bank-- Signature Bank--also went under.  Those two were the 2nd and 4th largest bank failures in U.S. history--and the extent of lies, fraud and coverup needed to keep the market from crashing would shock you. 

The regulators had simply looked the other way for over a year as the bank owners scammed the system and finally left the FDIC to cover the losses.  The biden Deep Staters covered it all up because it was later shown that the regulators had violated all the rules to keep voters from realizing what was about to happen.  The regime couldn't admit the truth to voters without losing votes.

Example:  The FDIC insures your deposits for $250,000, but connected Dem depositors at the two failed banks got losses of up to ten MILLION totally reimbursed by taxpayers.  Illegal as hell.  Totally covered up.  Hmmm...

But since Trump will be president on 1/20, regulators will no longer have any reason to ignore violations of banking regs.  They'll suddenly start following the rules, likely pushing at least four big banks into insolvency. 

Why will the regulators--so casual before--suddenly decide to start enforcing the regs, eh?  Because when the banks go insolvent, who will the Media and congress blame?  Who will that help in the midterm elections--which will then be just 19 months away?