Slow-Motion Property Crash in Germany is a Bigger Problem than in the US

A Slow-Motion Property Crash in Germany Is a Bigger Threat to Banks Than US CRE A long-term view of property values has shielded banks so far That could change soon if more forced sales hit the market As fears about US commercial real estate roiled German banks this month, their message was clear: don’t worry, the vast majority of our property exposure is domestic. That may not prove the comfort it seems. While the country has so far avoided the rapid market corrections that rattled the US, experts argue that reflects arcane accounting practices shielding its lenders and investors from…