Banks also have a MASSIVE amount of CRE Commercial Real Estate (office buildings) that are completely empty, without lease payments flowing in, and since COVID-19 has shifted knowledge work to remote-first in many cities, these office will be empty for a long time.
The CRE bubble is going to burst in the next 18 months as the 5-year commercial office leases signed in 2017+ are all going to come to an end, and the banks will be realizing these losses starting now and the next few years. Its going to get ugly soon.
The CRE bubble is going to burst in the next 18 months as the 5-year commercial office leases signed in 2017+ are all going to come to an end, and the banks will be realizing these losses starting now and the next few years. Its going to get ugly soon.