Hello, fellow Rebel Capital Soap your well, so my good buddy Jeff Snyder and Ken McElroy just discussed the real estate crisis.

They gave some incredible insights that I wanted to share with you right now. This is really going to, I think, open your mind or open your eyes as to how bad this problem really is, not just for the landlords landlords but also for the banks.

So let's get right into this video.

We're going to go through some clips and I'm going to share my thoughts with you.

I think Jeff tees it up at the intro quite well so we'll

listen to that first. This place to start here is last week. New York Community

Bank Corp came out with some earnings that had everybody talk. I mean the its own

stock fell by you know almost 50% at one point and it's down again today. It took the

entire regional bank index down with it and that's down again today.

But basically what they said was we've got these two commercial real estate loans

that created a ninefold increase in charge-offs and everybody went, whoa, whoa, wait a minute, what are you talking about here?

So Ken, from your perspective, I think the big question on everybody's mind, has something changed

over the last, last say couple months where before now everybody's kind of just been waiting we know commercial real estate is going to your problem you and I talked about this before but has something changed over the last couple of months that would

represent maybe the start of something going on?

Yeah, it's a good question.

Well, first of all, commercial real estate is a trouble to asset class.

There's no question.

I mean, all you have to do is look at what interest rates have done.

So, and, you know, the entire value, the capitalization rates or cap rates, all of that stuff is based on what people are willing to pay and obviously what that largely has to do with what the rates are.

So this has been going on.

Yeah, so Ken kind of, you know, this is Ken's world.

So like Jeff, he uses industry language that a lot of people aren't familiar with.

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