For those who don’t want to do the math, that’s a 97.5% loss for the owners.

This was done at auction, extended 3 times, and with the sellers having to lower the reserve price just so the sale would go through…

People have no idea how much this could be affecting the banking sector, but has been allowed to go unadjusted on balance sheets. There are banks with *enormous* exposure to commercial real estate, and so much of it looks like this.

I don’t know the timeline because it depends on tons of govt and fed “guarantees” and reporting rules which have been altered to help cover this (and a lot of other problems) up, but this will blow up at some point.

(Here’s a fun little graph showing possible exposure from recent years) https://i.nostr.build/hYhCqzSDNWiUsHOd.jpg  nostr:note1g36hengtfljpuznqf29vtjd6w52q2skh9wrvfhdmpq8h0hy8grfqekdk5k