I'm very happy that Mr. Geithner thinks the current commercial real estate crisis won't trouble the broader economy.
But here is what Mr. Bernanke said about subprime mortgages and the broader economy in 2007, just about the very same time the proverbial what hit the proverbial fan.
I agree with both men that the financial damage from increasing commercial real estate loan defaults and equity writedowns will fall hardest on the smaller community and regional banks, not the money center institutions so much. But this does not mean escaping a crisis, and likely it would mean having to bail out dozens or hundreds of institutions rather than a few "too big to fail" firms if balance sheets continue to deteriorate as they are now.
Robert J. Abalos, Esq.