The Washington Post ran a sob story for banks, noting how they are losing money on the commercial real estate loans they issued in the last few years. It is sad, but bankers are supposed to have a clue about their business. There was enormous overbuilding in almost every category of commercial real estate including retail, office space, and hotels. Banks would be right to refuse new loans in these areas even if they were flush with money. It would have been useful if the Post had included the views of someone familiar with the commercial real estate market.
--Dean Baker
