We arent dealing with that in the US (at least that we know of). However, we are looking at mass consolidation as the smaller banks have the combo of underwater commercial real estate loans and bonds that cant get loans on.
You are viewing a single comment's thread from:
So that means they are operating with money they do not own and still dealing with real estates with loans
It means they cannot get access to loans since their assets are not liquid and there is no market for them. Hence it carries a lower price if anyone will give money at all.
It is like going for a loan on a house and it was worth half of what you thought it was. Either you are not getting the loan or have to accept a lot less money.