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Extend And Pretend Coming To An End

Zerohedge.  I think he goes wildly over the top, especially at the end.  And I don’t think Armageddon is nigh.  But the numbers are of concern, and his basic point is worth remembering – a lot of these commercial real estate loans are still heavily-leveraged, and we’re operating with a lot less margin, making a lot of these banks very vulnerable to the next inevitable cyclical slowdown.  We may have avoided 1930-31, but 1937 is still out there, I fear.

Posted in Business, Economics.

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