This chart is amazing https://i.imgur.com/Qb8qv8o.png basically there's no end in sight. Everyone is moving their money to just 4 banks: Chase, Wells Fargo, Citi, and Bank of America. Because, why risk having your money in a small bank now?
At the same time Commercial Real Estate is imploding. SF has a 40% vacancy rate where pre-void it was 5%. It's like this in other cities too. These buildings have loans and without rent the loans will default. Then the bank owns it but what can the bank do with it? Sell it for a huge loss?
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This chart is amazing https://i.imgur.com/Qb8qv8o.png basically there's no end in sight. Everyone is moving their money to just 4 banks: Chase, Wells Fargo, Citi, and Bank of America. Because, why risk having your money in a small bank now?
At the same time Commercial Real Estate is imploding. SF has a 40% vacancy rate where pre-void it was 5%. It's like this in other cities too. These buildings have loans and without rent the loans will default. Then the bank owns it but what can the bank do with it? Sell it for a huge loss?