Facts matter: Sign up for the free Mother Jones Daily newsletter. Support our nonprofit reporting. Subscribe to our print magazine.

Email from a friend involved in the legal end of the commercial real estate market:

We just had yet another lender pull the plug on a commercial real estate deal that was set to go.  The stated reason was minor and technical.  The real reason we’re guessing is that it has too many underwater loans on its books and simply doesn’t have the resources.

So what is happening now?  Remember the doom and gloom scenario of mass foreclosures by banks to get the bad commercial real estate loans off their books?  Well, if my purely anecdotal experience with the first few months of 2010 are any indication, that scenario will not be happening any time soon — which is a bad thing.  It will not be a dramatic cascade but a slow tentative process with limited positive impact on the economy.

Instead, it appears that banks are continuing to grant very long deferments rather than take the loans down.  The logic here is bizarre, but understandable I guess.  They are punting on the issue until the economy improves, which they are betting is next year or so.  But if they don’t get the bad loans off their books, they can’t free up their resources to provide the necessary new financing to recharge the economy.  Then next year they’ll punt again.  And the vicious circle continues. I’m not sure what the government can do here, but I sure hope there is some creative thinking going on in D.C.

It’s just a single data point, but I’ll bet there’s a lot of similar stories out there. We may have saved the banking system last year, but it’s still in pretty fragile shape.

REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

payment methods

REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate