To the extent that certain real estate sectors are being propped up by speculation in future office use, the collapse of WeWork could set off a broader collapse

To the extent that certain real estate sectors are being propped up by speculation in future office use, the collapse of WeWork could set off a broader collapse in certain real estate markets. Whether that radiates out to the broader economy depends on how heavily leveraged investors are, and whether they can restructure their debts. Interest rates are very low, which makes debt less painful than in earlier eras, but there is always the risk of a panic causing markets to lock up. If contagion were to begin, then it's up to the central banks to step in forcefully with additional QE, so as to end the panic. Of course, the governments could engage in fiscal stimulus, which would obviate the need for monetary stimulus, but in recent years the politics have been against that.