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When I was a young man growing up in the 1960s…yes, I am that old…one particular of the cool shows on Television was HR PufNStuf. About nine million jobs are generated or supported by commercial real estate which includes jobs in construction, architecture, interior style, engineering, creating upkeep and security, landscaping, cleaning solutions, management, leasing, investment and mortgage lending, and accounting and legal solutions. In the years preceding the present crisis, a series of trends pushed smaller and neighborhood banks toward higher concentration of their lending activities in commercial real estate.

If the borrowers can’t refinance, financial institutions may face the unenviable process of figuring out how best to recover their investments or decrease their losses: restructuring or extending the term of existing loans or foreclosure or liquidation. There is no way to predict with assurance regardless of whether an economic recovery of enough strength will take place to minimize …