[vc_row][vc_column][vc_column_text]Tesla CEO Elon Musk has pointed to the “most serious looming issue” in the banking system in a new tweet. On Twitter, Musk was responding to an analysis by The Kobeissi Letter, which noted that more than $2.5 trillion in commercial real estate debt will come due in the next five years.<\/p>\n
As the analysts state, this is by far more than any other five-year period in history. “Meanwhile, rates have more than doubled and commercial real estate is only 60-70% occupied. Refinancing these loans is going to be incredibly expensive and likely lead to the next major crisis,” The Kobeissi Letter explains.<\/p>\n
The worst part, however, is that the small banks, which are currently struggling badly, are at the center of this crisis as well. 70% of commercial real estate loans are made by small banks.<\/p>\n
“This is by far the most serious looming issue. Mortgages too,” wrote<\/a> Elon Musk, who has commented on the US banking crisis several times in recent weeks, calling for all banks to be protected by the FDIC, something Treasury Secretary Janet Yellen has refused to do.<\/p>\n This is by far the most serious looming issue. Mortgages too.<\/p>\n — Elon Musk (@elonmusk) March 27, 2023<\/a><\/p><\/blockquote>\n\n