Many Regional and National Banks are as they say "kicking the can" down the road. They have many delinquent and soured commerical loans on the books and with the other "toxic residential loans" still hanging somewhere around they just don't have any strategy to get themselves whole. You really can't blame them, what do you do with a 100% or 50% vacant shopping center or office building once you foreclose?? Hang out a For Sale Sign and maintain these properties for the next five years or longer?
Additionally, the Federal Reserve isn't putting any pressure to bear on these member banks since they also recognize the "catastrophic repercussions" of another financial Waterloo!
So maybe the "elephant" will go hiding somewhere in the back room. Only problem is that its really starting to "stink up" the place!
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