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>> The CRE problem is not a creature of debt. It’s a function of a previously-useful asset becoming, suddenly, less useful. While I agree with that, the reason
by phkahler 2y ago
>> The CRE problem is not a creature of debt. It’s a function of a previously-useful asset becoming, suddenly, less useful.
While I agree with that, the reason it's become a national economic problem is because of the scale of the problem. I probably would not be as big a deal if interest rates never went so low.
- JumpCrisscross 2y ago> the reason it's become a national economic problem is because of the scale of the problem. I probably would not be as big a deal if interest rates never went so low Sure. But that’s about cost of capital. Not debt. If it had all been financed with equity it would be a bit more resilient. But it would still be a massive problem.