EXTEND AND PRETEND.

$1.5 TRILLION in Commercial Real Estate loans will mature by the end of 2026.

> Office vacancy is stuck at 19%.
> Valuations in major cities are down 30-40%.

Mathematically, hundreds of regional banks are insolvent.

Why haven't they collapsed?

Because regulators are letting them "extend" the loans and "pretend" the collateral is still worth 2021 prices.

You can fake the valuation, but you can't fake the maturity date.

When that $1.5T wall hits, the Fed has two choices:

1. Let the banking system collapse.
2. Print the difference to bail them out.

Hint: They never choose Option 1.