No, not in their interest… UNTIL THEY ARE “FORCED” TO CLEAR THEIR UNDERPERFORMING LOANS – LIABILITIES. And that happens. Not too long ago the RTC EVENT and regulators were “encouraging” lending institutions to clean up their financials which led to a rash of properties released at fire-sale prices. A lot of people went broke and some got very very rich.
That was then. Now we have what could easily be described as a far more dire lending situation where net debt has skyrocketed. Rapid close to 50% price declines are easily achievable.
