The Journal calls this "relaxed accounting standards." That's a polite way of saying that the government has made legal accounting fraud and willful disregard of the impairments that are embedded in these loans - impairments that with any proper regulatory system would have been forced to be recognized as they occurred. Still, most of the $6.7 trillion in commercial real estate is privately owned. Also, it is unlikely commercial real estate will benefit much from an early stage of an economic recovery. What landlords need is occupancy and rents to rise, and that means employers have to start hiring and consumers need to shop more. So far, there are few signs this is happening. Got it? $7 trillion of exposure that had its "value" set during the era of fraudulent lending and accounting, where rents and occupancies rise to the sky, growing literally all the way to the sun. Such magical thinking - the belief that compound (exponential) earnings growth can b
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