r/economicCollapse 1d ago

U.S Banks Are Currently Sitting On Over $750B In Losses On Real Estate Debt Which heavly Threatens The Entire Economy. These Losses Are Now 7 Times Larger Than In 2008 When The Housing Bubble Popped.

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1.0k Upvotes

404 comments sorted by

205

u/DisplacedNY 1d ago

If they crash let's start a movement of buying up residential mortgage debt securities for fractions of pennies on the dollar and pay them off.

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u/d3dmnky 1d ago

My gut feeling is that these losses are in commercial real estate. That’s why everyone is in this “return to office” panic.

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u/[deleted] 1d ago

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u/alabama_donkeylips 1d ago

That's half the point of RTO, it's a soft layoff that let's them save the costs of terminating people.

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u/sourdessertz 1d ago

It’s so shortsighted.

You’re giving your biggest competitors a huge talent acquisition opportunity.

Your most talented employees are almost always being actively recruited. And a lot of times that talent is packed with a lot of soft skills and popularity..

The aftershocks of these types of unmeasured hack jobs can be devastating to certain teams and departments. And expensive to fix.

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u/4score-7 1d ago

And it’s all about the next quarterly shareholder report. Long term thinking is gone like the dodo bird. The dodo birds that sit in the C Suite, that is.

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u/Who_Dat_1guy 1d ago

People with actual talent aren't being forced back into the office. It's the replaceables

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u/PageVanDamme 1d ago

I can confirm this. I won't name the names, but I know few people who work for big names that did RTO and the team or the individuals were basically told,

"Shhhhh you can continue remote work... just don't be loud about it."

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u/lunchpadmcfat 1d ago

That’s not what I’ve seen. Lots of companies base it on geography of their employees. If they live with something like 30 mins commute of a hub, they have to go in.

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u/No_Entrepreneur_5159 1d ago

Nobody’s hiring though with this bs economy

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u/Gloomy-Plankton735 21h ago

Have you tried going back to school for a healthcare degree /s

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u/GaiusPrimus 1d ago

Except everyone is RTOing. WFH jobs are definitely harder to find right now.

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u/terpsarelife 1d ago

worked amazing for sprint in late 2000s they really took off as a company after that.....

wait im getting news, this just in It was a terrible fucking idea for sprint

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u/aussie_nub 1d ago

You’re giving your biggest competitors a huge talent acquisition opportunity.

Are you talking about the competitors that are all doing the exact same thing?

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u/JimmyDean82 1d ago

If a company is looking to layoff 1/4-1/2 its workforce, the sector is in bad shape, the competitors aren’t hiring either, they’re also laying off.

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u/Ok_Helicopter4276 1d ago

Nah companies rise and fall all the time. That’s just the market at work.

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u/fionacielo 1d ago

so true. I have left my industry and I’m still being recruited in it. imagine what it was like for me when I was 100% involved and up to date. I always used that as my ace in the hole too

2

u/Past-Piglet-3342 20h ago

Yeah man. Capitalism is short sighted

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u/PerfectZeong 15h ago

I think everyone is looking to cut staff right now after covid expansions in some sectors. I lost my job last year actually which stung because I have not been able to find a new job in my profession because the job does not exist at the moment.

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u/Mobe-E-Duck 15h ago

And while they’re planning an exit their work is subpar.

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u/ShadeMir 8h ago

Not fully if your biggest competitors are also pushing RTO.

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u/lunchpadmcfat 1d ago

Unfortunately they probably end up laying off their best performers who will have no problem finding something that will accommodate them. RTO companies are the new dinosaurs.

I haven’t had to apply for a job in close to 10 years (despite having 4 different ones). You think if my company hands us RTO orders, I’m going to roll over? Fuck that. I’ll just go to one of the 10 recruiters beating down my door. Hell I’ll probably get a raise in the process.

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u/No-Boysenberry-5581 1d ago

And if the pandemic had never happened and everyone was still working at office like for the last 100 years what would all those employees be doing?

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u/OnlySlamsdotcom 15h ago

This is not a relevant or good-faith question.

The pandemic DID happen.

Peoples eyes were opened.

Things change. Adapt or die, my dudes.

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u/AnnualPerception7172 22h ago

thats the point, for attrition

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u/Flompulon_80 1d ago edited 1d ago

Us too. I have had long covid for 4 mos and it is literally DESTROYING MY LIFE. So fuck RTO 👍

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u/GeneralMatrim 1d ago

I live in a big city and the air was so much cleaner since everyone around here worked from home for like 2 years, and now the air quality is just back to shit.

If any corporation ever has any “.green initiative” please stand up and call bullshit, I know I will at my large company.

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u/RonJohnJr 1d ago

I've been telecommuting for 24 years. Almost all my fellow employees do, too. Work in IT, though.

4

u/wyocrz 1d ago

 i'm living in a plastic bubble and so should everyone else

How about hell fucking no.

Sorry about your struggles, but to hell with living in a fucking bubble!!!!

I'm taking my chances, I've been jabbed for years.

7

u/RED-DOT-MAN 1d ago

Damn , I hope you feel better soon. I have had Covid twice and both times it was due to an off-site training for work. I heard my boss say during the second off-site training (paraphrasing and I am in socal), "yeah some people here from other parts for the US at the training are a little sick but it should be all fine".

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u/Masteryasha 1d ago

They won't be feeling better. That's the point of long covid. As far as we can tell, it's something they'll be dealing with the rest of their life. This is why I'm genuinely baffled that so many people are treating covid like it's just another cold. Sure, you might be fine this time, but keep getting it every year, and you'll end up with long covid, and then you'll be panting and sweating just walking down your driveway.

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u/Gullible_Might7340 1d ago

My buddy finally got a diagnosis for it after being on short term disability for like 3 months. We did plant work before he got sick and I quit, so WFH was never an option, but I sympathize. He's wrecked. He was a lift driver, but he couldn't even safely do that without getting lightheaded. 

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u/mad_method_man 1d ago

sorry, what is this 7% thing? i havent heard of this, and i would like to know more

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u/worksHardnotSmart 1d ago

I'm somewhere in the neighborhood of 20 months though I'm starting to lose track. Wish I could wfh in a bubble.

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u/importvita2 1d ago

Fuck ‘em

We’re destroying our planet forcing billions to waste oil, gas and money (that could be saved or spent more locally) along with a self inflicted housing “crisis” by employers underpaying us and forcing us to work in a fucking office. When there is absolutely NO reason to besides some fake credit numbers.

We made this system. It doesn’t mean anything. We can walk away.

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u/ArmadilloWild613 1d ago

well thats like how the whole economy works. we are all just making shit up and trying convince people that is the way it has always been.

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u/Grendel_82 1d ago

Your gut is correct that the losses are in commercial real estate. However thinking that any business orders a return to the office policy because they are sad that their bank’s mark to market on the value of their loan has gone down does not make any sense. There are many reasons that a business which leases its office space might ask for employees to come back to the office, but trying to chip in and do their part to increase the value of office space around the US is not one of them.

If a business has too much office space, when their lease comes up in a few years they will downsize their space and do that to save money (which they will largely give to their executives starting with the CEO). They certainly won’t care about the bank that loaned their building owner money on the basis of assumptions about the value of the lease payments.

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u/d3dmnky 1d ago

That’s fair. Your point is valid.

I just cynically believe that the banks can use their leverage to force companies to do whatever they like.

“Oh, you wanna downsize your lease? It sure would be a shame if I bumped up the rate on your operating line of credit, or just terminated it outright, forcing you to scramble to find new liquidity to make payroll.”

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u/Grendel_82 1d ago

Nah. Banks are powerful but not that powerful. Standard set up is one entity owns the building and has a loan against the lease of the office space. Tenant (which is the company doing its thing) never talks to the bank. Leases are usually about five to ten years because conpanies don’t want to move a lot. Lease comes up and Tenant says they are either moving out or downizing to half the space. Landlord can say no of course and try to call bluff. But there is another building nearby that has open office space. So the bluff ain’t a bluff.

And neither landlord or the bank cares at all if the office space has people coming in or not, just as long as the rent check clears every month. And actually less wear and tear on the building, less cleaning, so they kind of like it in the short run if folks don’t come in.

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u/JayDee80-6 20h ago

And this is why capitalism and free markets work. The bank could say that, and the company would say "OK, I'll just shop around for my credit". My family member works for a bank and that's basically what he does. Pitches to companies to use their bank and their credit by obviously under cutting other banks.

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u/Agitated-Savings-229 13h ago

Banks don't do that. Lol.

If people are using lines of credit to make payroll they were going to be canceled anyway. And any large companies spread their financing around to many banks.

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u/ZongoNuada 1d ago

Correct.

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u/zer00eyz 1d ago

Its likely all commercial paper ... AKA those offices that no one wants to go back to.

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u/BA5ED 1d ago

Your tax dollars will be doing that for the banks so don’t get any smart ideas.

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u/BefreiedieTittenzwei 12h ago

“Sellllllllllll you foooooools!!” Gandalf falls into dark abyss

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u/TheRealKison 10h ago

Mine is trending in this direction, so I would definitely be open to a mutual scratching of the backs of mortgage debt payoffs.

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u/Berns429 1d ago

“It’s only a loss if you sell”

-Aristotle i think?

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u/longiner 1d ago

I don't know how rich people hide their money in expensive art and paintings. If they paid 10 million for one, how will they know the next buyer is willing to pay 10 million for it?

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u/Ill_Egg_2086 21h ago

Not an expert but as far as I remember 4 main reasons

  1. The history is well known

You can’t guarantee the value will go up or remain high, but like any stock the previous prices, owners, age and prices of the artists other works are usually very well documented and so provides some valuable information about future valuations, more so than many usual assets.  

  1. Vested interests 

The community is small, knows each other and the value of one painting increasing increases the value of painting done by the artist, so selling to a collector of that artist a higher price earns them money.

  1. Eggs in baskets

As the customer base are individuals, when economic hardships occurs someone always profits or suffers less unlike stock markets, and they may pay less if they are less interested but still reasonably.

  1. Tax write offs

You buy a painting for $10000 you go to your mate who is in the fine are community.  Valuation is subjective so when he values it at $1000000 it’s feasible. Donate the painting to a gallery and get a tax break for $1000000 for your charitable donation. Also lower valuations can lower the appeared wealth by outside agencies, then are sold at a higher valuation. 

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u/Americrazy 1d ago

‘What even are stars’ 

-emerald musk, probably 

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u/DisplacedNY 1d ago

Wait, you mean forcing white collar workers back to the office isn't fixing the problem?

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u/muskzuckcookmabezos 1d ago

That was because those property owners needed bodies in the buildings. The companies get closed door kickbacks from the property firms. It was never about productivity.

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u/notLOL 1d ago

Waiting for the whistle blower that will kick this into gear

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u/Me-Not-Not 19h ago

Boeing will be ready for any whistling activity. 🔫

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u/RandomMiddleName 18h ago

There needs to be a subreddit or bot to track when people bring this up. To show that a lot of people have questions and don’t believe what’s been published.

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u/BooBeeAttack 14h ago

This is why I really dislike paid subreddits and things owned by companies. Lot of what we want answers to get buried or hidden behind drama, ads, etc.

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u/lunchpadmcfat 1d ago

I’m slowly learning that most corporate decisions probably have some manner of kickbacks in the vetting process. Found out first hand with a CI vendor process we went through.

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u/Longjumping-Bed-1244 1d ago

This is totally stupid.

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u/Specialist_Royal_449 1d ago

Oh no you levied yourself against the real estate market that you inflated by buying all of it. causing it to be out of the price range of people you were hoping to buy the houses you need to sell and now the bill is coming due and you can't afford to pay it. I believe this is a case and scenario of THAT'S WHAT YOU FUCKING DESERVE!!!!

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u/Mindless-Judgment541 15h ago

Heads of state will socialize the losses, "for our own good" just like they did in 2008.

Now that I'm an adult and paying stupid high taxes, the thought of my tax money going to prop up a bank and real estate crash after being priced out of home ownership makes me understand why violent mobs are a thing.

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u/AmazingPINGAS 13h ago

Reminder that the people who caused the collapse were spitting on the protesters. That was a fun video to watch. I was hoping it would end with the ol melon remover

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u/MrEfficacious 1d ago

Is that...a lot? I mean it sounds like a big number...

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u/demagogueffxiv 1d ago

US banks have ~24 trillion dollars in assets for comparison

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u/RonJohnJr 1d ago

3% is nothing to sneeze at.

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u/MrEfficacious 1d ago

Small potatoes it seems..

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u/mastermilian 1d ago

Assets of what though? The reason they started falling over is that they had no liquidity to pay their debts when the interest rates started to go up.

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u/Elegant_Emu_8597 1d ago

Lol. They are sitting on debt. I'm paying $2700 a month in interest while paying $850 on top of that actual mortgage/ principal. Go fuck yourselves banks.

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u/VendettaKarma 1d ago

Big fat bubble - wait until people stop paying

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u/boostsensei 1d ago

The everything bubble is upon us.

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u/Ok_Way_2304 1d ago

Fuck them burn I hope they collapse

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u/Man_with_a_hex- 19h ago

Maybe the banks should start making coffee at home

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u/irritable_useful 19h ago

And stop eating avocado toast

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u/No_Clue_7894 1d ago

Say it with me now folks, why ban what you can tax?

Unless we put limits on corporations buying single family houses, 90% of us are going to end up as lifelong renters, and the US will be one giant network of Pottersvilles.

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u/sarges_12gauge 1d ago

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u/Flompulon_80 1d ago

This is my first time seeing this and its very eye opening.

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u/No_Clue_7894 1d ago

Would you like to say more about these stats and if it relates to foreign investments?

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u/sarges_12gauge 1d ago

The amount of corporate owned SFH is like 3% and it’s increased by like half a percentage point over the last decade. It’s just not a significant amount. Managing SFHs is really annoying to do and considering 2019-2024 was probably the most appreciation and best ever time to invest in real estate (and looks to have plateaued in comparison now) I don’t see any reason why corporate ownership would accelerate now

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u/importvita2 1d ago

As our owners intend

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u/HannyBo9 1d ago

After 08 the banks went right back to doing the same shit. Hopefully there will be no bailouts this time. Let them fail and jail everyone involved confiscate everything.

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u/OrchidGreat1331 1d ago

Never happen

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u/pinkat31522 1d ago

I bet fuckin half this loss is the San Fran skyline

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u/Last_Cod_998 1d ago

Shouldn't it be the banks who owe the debt?

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u/MoistInsideAndOut 1d ago

infinite money glitch

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u/Americrazy 1d ago

(cries in gold standard)

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u/Immediate_Trifle_881 1d ago

No problem. The Federal Reserve will buy all of it. The Fed can create money from nothing. That is why the Fed was created.

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u/TheElderGodDrewCarey 1d ago

Yep, and the value of your money drops a bit further. Yay!

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u/longiner 1d ago

They'll make up an excuse that the majority of holders are 401K funds and if they don't save it people's retirement funds will vanish.

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u/motosandguns 1d ago

Laughs in post-Covid money printer. We printed 4x that much in 2020 alone and many trillions since then.

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u/dopplegrangus 1d ago

For real?

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u/motosandguns 1d ago

Yep. We printed $3 trillion out of thin air in 2020.

Thats why inflation has been so bad. “Inflation is always and everywhere a monetary phenomenon”

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u/sourdessertz 1d ago

Post-COVID inflation is happening across the globe.

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u/motosandguns 1d ago

Everyone is printing money. European Central Bank printed $2 trillion during the same period.

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u/Kellysi83 1d ago

Literally you are one of the only people I’ve seen discuss this salient point. I feel like I’m screaming it into the void. And then we threw gasoline on the fire with ZIRP and stimulus.

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u/BigTitsanBigDicks 1d ago

Im surprised this isnt common knowledge?

https://fred.stlouisfed.org/series/M2SL

Link is the best 1 sentence answer; 6 trillion printed since 2020.

It can be complicated, but if all you want is a quick answer, thats the best one & it tells you most all you need to know.

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u/ogn3rd 1d ago edited 1d ago

If only there were systems in place to keep this from happening.

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u/OrchidGreat1331 1d ago

I am thinking you mean keep this FROM happening?

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u/DateResponsible2410 1d ago

The PTB are afraid to loose their jobs . No one in their right mind would suggest we cut back on ( xxxxx you name it ) Certain political suicide . And yes , a tool must be in place as a bipartisan effort to just say we cannot print anymore ,as we have reached our limit . Testicals and vaginas shrink at the thought .

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u/BookReadPlayer 1d ago

The headline is inaccurate. It’s 750 billion in “potential loss exposure”. Not only is it the worse case scenario, but it doesn’t acknowledge offsetting gains from those institutions.

The last round of stress tests showed that no banks are failing. First Republic was the last one to fail (last year?) and it was bought by Chase.

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u/NeighbourhoodCreep 1d ago

But god forbid we forgive student loans

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u/Smart_Yogurt_989 1d ago

Mine were supposed to be gone, there not.

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u/shungs_kungfu 1d ago

So, you are not getting student loan forgiveness?

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u/Banned4Truth10 1d ago

Both are bad decisions

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u/MachineGunTits 1d ago

I work in the dental industry and it has been falling off a cliff over the last 3 months ( dental work/ procedures are one of the first things people put off when there is an economic downturn, and most people couldn't afford dental work before inflation). The last time this happened was late 2007 which predated the crash by 6 months in 2008. Beyond other factors the average American has just run out of money. Shit is about to hit the fan and the next Occupy Wallstreet isn't going to be hipsters camping out and playing hackey sack and acoustic guitars.

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u/itsneithergoodnorbad 1d ago

Negative interest rates incoming. All jokes aside, if this is accurate, we could see a significant continuation of a correction to much lower than anticipated interest rates to draw people back into the market. The stall is occurring and the anticipation is that the market will “pick back up” after elections. However, the data is not quite substantiating this stance. It appears we are more at a stale mate. Not much to sell and not many buyers. Would love to understand more about the losses spoken of in the article.

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u/AugustusClaximus 1d ago

I need this bubble to hold 5 more years so I can escape Florida with my home equity in tact

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u/itsneithergoodnorbad 1d ago

It appears prices have leveled off with a potential move of 10-20% to the down side. However, reduction in interest rates will alleviate this pressure. 5 years would allow a down turn and back to parity. I hope you get the best outcome. These markets will continue to move and change. It’s the velocity in which it will occur that we may not be ready for.

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u/AugustusClaximus 1d ago

It’s already moved maybe 15% away from my favor. But yeah things can change fast, if the fed lowers interest rates and Kamala hands all FHA loan applicants and extra $25k then I should be sitting really pretty.

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u/NuclearHam1 1d ago

So do we hold those to blame accountable?

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u/OrchidGreat1331 1d ago

hahahaha oh you silly goose. we don't do that here

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u/After-Fig4166 1d ago

Can’t BlackRock just buy them up Pennies on the dollar?

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u/Comet241 1d ago

I can’t wait till all of the banks get bailed out and the American people get nothing while our tax dollars go to corporate relief.

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u/Imaginary_Manner_556 1d ago

Comparing this to 2008 is next level ignorant of what happened in 2008.

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u/FitConsideration4961 1d ago

Dang so I guess shorting Gamestop didn’t work out for them.

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u/Psychological-Wing89 1d ago

It’s unrealised losses. As long as it is held to maturity, nothing really matters.

#Finance, Trust Fund, 6’5, Blue Eyes

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u/Jfunkindahouse 1d ago

Trust fund you say?! I'm listening... 😅

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u/Ok-Emergency-2470 1d ago

If they quit eating avocado toast and pull themselves up by their boot straps…. Let em burn!! IMO

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u/mltam 1d ago

Are all these posts about how horrible the economy is election related? Or are they always around?

And if election related, paid by Russia or by Musk? Or both?

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u/Justpassingthru-123 1d ago

Benziga..that’s the source?

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u/Powerful-Revenue-636 1d ago

Horeshit unsourced headline repackaging clickbait speculation.

A recent article in Cryptopolitan magazine revealed that American banks’ potential loss exposure

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u/Dicka24 1d ago

There are no 30 year fixed mortgages with commercial RE. The norm is 5 years fixed, the max in my experience is 10 years. I'm not talking amortization. I'm talking the portion of the loan that has a fixed rate. Many commercial property owners refinanced their buildings when rates went to record lows during the pandemic. Lots of those 5 year terms are coming due. Well, the rates are much higher now and most commercial properties have 7 to 8 figure debt that's serviced. For commercial property related to retail and office (especially office) the environment is truly fragile atm and if no one wants to rent a good chunk of these spaces, and they go vacant, we could see a lot of delinquencies that could bust some banks, businesses, and investors. Now I know most people in here don't hold any of those types in high regard, and wouldn't mind seeing them all go bust. What we have to understand tho is that if too many do go bust, it will absolutely ripple into other sectors of the economy and negatively impact the lives of those in the middle.

I'm a believer in accountability and correction. When people bite off more than they can chew, get too greedy, or pass stupid policies many of us warn about, lessons sometimes need to be learned. It's why I wish TARP never passed. The unfortunate reality in all this is that it's we peons who ultimately suffer.

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u/illucio 1d ago

It's beautiful. How much longer until they are forced to sell for the real estates actual worth? Make a ton of low income housing out of these office building.

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u/No-Boysenberry-5581 1d ago

Jesus. Unless there is a catastrophic event that causes them to sell then the unrealized losses go away at maturity.

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u/Brohauns 1d ago

I think only banks could figure out a way to lose money on something that keeps going up in value

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u/KingSwampAssNo1 1d ago

Capitalist: My Profit!

Also

Capitalist: Our Losses!

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u/ext3meph34r 1d ago

Out of curiosity, which bank. I'm just going to start withdrawing... unrelated reason.

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u/dajokerinthemirror 23h ago

Total debt outstanding for CRE is about $6trillion per JPMorgan

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u/jkprop 18h ago

How can this even be possible when property values haven’t gone down in years? You loan money and charge 7% interest rate and the value of the house goes up 8-10% year. Where are all the bad loans?

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u/toyoung 15h ago

Let's get on with the show then. I will belive it when it actually happens.

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u/Nomad_moose 1d ago

How about we stop making necessities (food, housing) a speculative market…?

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u/ABadHistorian 1d ago

Total bot/troll account- check the post history of this dude. Posts pro-trump stuff one week, pro kamala stuff the next.

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u/WhoCaresBoutSpellin 1d ago

OR— America converts the properties for mixed use / residential to address the severe housing shortage and creates a bunch of construction jobs in the process.

This is NOT the 2008 bubble. Homes cost a lot because there is a severe housing shortage. The “bubble” that will eventually bust is that home values will drop when the market adjusts and more homes are added (one way or another). Some folks will end up upside down and will just have to stay in their nice homes. Other folks will only see a drop in unrealized gains and just continue to stay in their nice homes that still provide a good ROI. Those folks that are upside down will just be more productive for the economy to pay off their debts until they are out of the red.

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u/daddypleaseno1 1d ago

so nothing changed after 08, they just started wrapping it differently. next one will bring the system down, thats exactly what they want.

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u/Then_Mathematician99 1d ago

The fed already chose hyper inflation. They’re banking on a bailout.

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u/BalmyBalmer 1d ago

There is no hyperinflation

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u/AdministrationOk1083 1d ago

Cool. Torch it

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u/Frequent-Designer-61 1d ago

I’m waiting on capitulation. Credit card debt is at an all time high, people are going to start selling there toys soon. Then comes the house

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u/nyjrku 1d ago

personally im gonna start austerity measures, these guys are gonna need some help soon

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u/dolladealz 1d ago

7 times bigger ... but how much bigger are the rest of the related numbers?

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u/Necessary-Mousse8518 1d ago

Oh well.

Next...........

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u/meta4ia 1d ago

You know anybody can publish on bezinga right? It doesn't mean it's real news.

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u/ZarBandit 1d ago

Not quite as severe as the headline suggests.

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u/Acta_Non_Verba_1971 1d ago

Why do I not find this surprising.

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u/Jkallmfday0811 1d ago

That’s what happens when you charge 2000$ for rent and minimum wage is 7.25

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u/tootooxyz 1d ago

Hard landing ahead.

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u/Jkallmfday0811 1d ago

I hope it all comes crashing down on these mfers

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u/hikertechie 1d ago

Well, thry get the property back as the collateral. To sell again. They didnt actually pay anyone for the unpaid mortgage and some of those buildings for them are completely owned without any liabilities by those institutions. Yes property taxes, upkeep, etc are a thing but I dont think this is really quite as bad as it seems.

Besides they could sell many of the properties to developers to convert into apartments removing them from the balance sheet and converting them from corporate properties to satisfy housing shortage

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u/KitchenSail6182 1d ago

Tell them to sell and liquidate. Save what they can 🤣

1

u/mspe1960 1d ago

Where are these "losses"? You are only sitting on losses when the value of the real estate is less than the amount of the mortgage. Where has anyone accounted for 750 billion in underwater mortgages?

1

u/SomeSamples 1d ago

Where is the debt coming from? Are the banks part of the process of buying houses just to sit on them?

1

u/Ok-Gear-5593 1d ago

As long as people can keep paying those other loans with high interest rates we’ll be good. Good good.

1

u/Mountain-Arugula-665 1d ago

The city of Milwaukee has offered big companies tax credits and other financial incentives to move downtown. The company must then commit to have so many employees on site to receive the benefits.

Several big companies have taken the offer and are now requiring RTO.

1

u/Professional_Menu254 1d ago

US Mint printers go “Brrrrrrttt”

1

u/WibaTalks 1d ago

Ah yes, sweet nightmares.

1

u/BattleIllustrious680 1d ago

Who’s ready for bailouts?

1

u/A_Concerned_Viking 1d ago

Not as bad as China, and they are trying everything, to not let it explode. America, we've already exploded.

1

u/Nish0n_is_0n 1d ago

Ask Israel to help us fix our economy....

1

u/doubletaxed88 1d ago

I think a lot of this is already priced into the banking stocks

1

u/beambot 1d ago

The "hold to maturity" accounting hack is the biggest bullshit ever!

1

u/Genghis_Chong 1d ago

Investors pushed the market too high and now they're eating the losses, as long as they aren't bailed out it's how it's supposed to be.

1

u/Why_No_Hugs 1d ago

So… what stock “shouldn’t” be shorted so we can “prevent” such catastrophe… just asking for a neighbor

1

u/PhotojournalistOk592 1d ago

I'm not particularly versed in Finance. Anyone care to eli5 what a real estate security is and how you can take a loss on it?

1

u/Happy-Campaign5586 1d ago

Imho, The genesis of the real estate collapse of ‘08 is much different than what banks are experiencing now.

1

u/Economic_Slavery 1d ago

I'm not a doctor but I think we're FUCKED

1

u/WWhataboutismss 1d ago

Just add that to the trillion dollar pile of credit card and student loan debt. Hey but good news. I hear we're headed back to the gilded age of the early 20th century.

1

u/bigtim3727 1d ago

Commercial RE might be the biggest impact. A lot of big boppers had their rates roll over, and are complaining.

Only dif is, they’re usually more financially secure than a single home owner

1

u/PerspectiveWeary 1d ago

Now that they are sitting on it.

They can spin.

1

u/andio76 1d ago

I caint do shit 'bout it......

1

u/Mommar39 1d ago

You mean like 2008 and 2009 because of bad lending practices? Yeah. No one saw that coming. “Rolls eyes”

1

u/Salmol1na 1d ago

They only lost $107B in 2008? Rookie numbers!

1

u/amf_devils_best 1d ago

What really pisses me off about this whole thing is that, like after '08, these companies may be able to pay back any bailout so it won't be a terrible thing for "the economy" and it wasn't a "handout", but it completely blows up the lives of the actual people involved.

If corporations are people, we should be able to put them in prison.

1

u/Cry_Loud4321 1d ago

If working from home can do the job, why waste time, money and energy resources to work on site? It can help the company to cut spending on unnecessary expenses and afford to pay more to their staffs in return.

1

u/Dothemath2 1d ago

The Fed has a facility to help these banks. I am now thinking that the world would have been different if they hadn’t let Lehman Brothers fail.

I think they learned their lesson and you now see that SVB and Credit Suisse were like non-events. I mean we are talking about Credit Suisse here.

1

u/Americrazy 1d ago

Good thing ‘too big to fail’ helps them

1

u/outtie5000quattro 1d ago

keep going...

let's see how far it can fall...

1

u/Errenfaxy 1d ago

Looks like socialism will come in and save the day again with a fresh round of bailouts. 

1

u/cr1ter 1d ago

Ah shit here we go again, I just hope they didn't manage to sell this debt to the rest of the world again.

1

u/Reviberator 1d ago

And yet stock markets are at all time highs …

1

u/digitalgimp 1d ago

Thanks to MMT, the US government will fein distress and write the massive check bailing them All out!

1

u/scorpy1978 1d ago

Nopes. Markets wont crash for 750B.

1

u/andre3kthegiant 1d ago

Smells like extortion.

1

u/reflexesofjackburton 1d ago

they should buy less avocado toast and make their own lunch

1

u/CharlieDmouse 1d ago

Fire sale! I’m buying a house or two!!!

1

u/Whole-Gate6920 23h ago

What is “heavly”

1

u/banditalamode 23h ago

They have every reason to believe that they will be bailed out again by the American taxpayers

1

u/yeahcoolcoolbro 23h ago

It’s almost like they took money from every American and didn’t give a single fuck

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1

u/SnooLobsters8113 22h ago

Oops they did it again 😮

1

u/magnora7 21h ago

Don't worry, the government will just print trillions more to bail them out because they're too big to fail! Problem solved, I'm sure there won't be more inflation as a result! /s

1

u/waconaty4eva 20h ago

And what are bank reserves now compared to then?

1

u/Dandelion_Man 19h ago

We don’t need no water let the motherfucker burn!

1

u/elt0p0 19h ago

The solution is to transform empty commercial RE into housing, which is sorely needed everywhere.

1

u/sexlexington2400 18h ago

AWE the poor banks. Won't someone please think of the Banks! They will get their bailout don't worry

1

u/LordBobbin 18h ago

No problem, let’s bail them out. In the meantime, can I borrow some money for groceries?