Although some think it’s too soon to worry about high inflation, there are risks for that to happen in the medium term. Besides the obvious risks, a new bubble might be brewing in asset prices as investors search for higher returns, and the gap between actual output and potential output might be smaller than most think.
Community banks seem to have the most to fear about the state of commercial real estate today. The problems with these loans, however, shouldn’t derail the entire economy.
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