ICYMI
https://www.federalreserve.gov/publications/files/2023-dfast-results-20230628.pdf
All 23 Banks survive Stress Test
https://finance.yahoo.com/news/all-23-banks-survive-feds-2023-stress-test-203007760.html
“This Market Will Discipline Those Who Refused to Discipline Themselves”
Yeah, the Banks survive because they’ll foreclose on the low Interest Rates that American people had when they purchased their homes ( due to Covid homeowners did forbearance which becomes due and payable all at once) and re-lend at their new higher interest rates.
Yahoo Finance article (This year the Fed examined how 23 banks would fare under a severe global recession that included severe stress in commercial real estate. In such a scenario unemployment spikes to 10%, home prices and commercial real estate plunge about 40%, the stock market plummets 45%, market volatility jumps and corporate bond yields rise.)
https://nypost.com/2023/06/23/commercial-real-estate-apocalypse-sees-buildings-abandoned/
Inflation in the new era of remote work is creating a global commercial real estate “apocalypse” where zombie properties sit vacant and owners with loans coming due hand their keys back to lenders, according to experts.
“The apocalypse that’s facing commercial real estate at this moment is all about interest rates and debt maturities,” Harold Bordwin, a managing director at Keen-Summit Capital Partners, a New York firm specializing in assisting distressed properties, told The Post.