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Chicago Fed Letter, No. 281, December 2010
Why Aren’t Banks Lending More? The Role of Commercial Real Estate

Since August 2007, the U.S. and global financial markets have endured the worst crisis since the Great Depression, accompanied by a deep economic recession. At the height of the crisis, whole segments of financial markets froze and market participants hesitated to engage in transactions with even the most creditworthy counterparties.

 

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