Extend and Pretend is still in full effect…..

The wall street journal recently published an article about the banks policies concerning loans for commercial properties that have come due and now cannot be refinanced.   The title of the article is….

To Fix Sour Property Deals, Lenders ‘Extend and Pretend’

You can find a link to the article by clicking the following link.


What does this mean for real estate in this country?   We are in for a long haul of real estate being a drag on the economy and on banks balance sheets.   After all if banks have too many bad loans how can they make new loans?   With less capital to make new loans those businesses who need credit to grow or expand will find it harder to do so.   No expansion or growth means no new hires….

How do we solve this problem?    What has history told us to do in times like these?   Do you have any new ideas on how to navigate thru this mess?

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