Investor kit made up of 3 brochures

Get $500 and your FREE investor kit!

American gold eagle coin Request your FREE Precious Metals Investor Kit and we’ll immediately add $500 to your account to help you get started!

The $500 can be used for shipping, insurance charges or IRA custodial fees

Lear does not provide financial advice and is a for profit retailer.
Skip to main content
Back to Top
Speak to a specialist 800-576-9355

Is the economy about to fall off the financial cliff?

by Rachel MillsFebruary 22, 2024

Wile E. Coyote is under copyright, so here is an AI generated image of a realistic coyote falling off a cliff. No actual coyotes were harmed.

And is commercial real estate about to collapse banks?

Remember Saturday mornings, watching cartoons? Every Saturday the coyote would chase the roadrunner around a desert landscape and every Saturday he would get tricked into running off a cliff. But for a moment, he would hang in the air before realizing he's about to hear the penny whistle and fall to the bottom of the canyon. He would hold up a sign, and down he would go.

Friends, our economy feels like Saturday morning right now. Normal laws of physics don't seem to apply to anything we see going on in the markets. It's all cartoon economics, with stocks jumping on bad news. Unsustainable debt piled on unsustainable debt.


  • 65% of consumers live paycheck to paycheck
  • Auto Loan delinquencies are rising
  • Credit card debt is up 10% year over year and, delinquencies are rising
  • 60% of consumers can't afford an emergency expense of $400
  • Major retailers are closing stores; Walmart, Bed Bath and Beyond, CVS, Best Buy, Macy's and more
  • Bankruptcies have surged 18%
  • Amazon, UPS and Fedex laying off tens of thousands of workers

And yet, going by the mainstream financial news, you'd think everything was great.

Dig a little deeper and you can see the economy is about to fall off the cliff.

Commercial real estate could be the gravity that's about to kick in, by drowning the banking system in losses. It is estimated that banks are holding up to $2.2 TRILLION in unrealized losses due to high interest rates.

Remember the collapse of Silicon Valley Bank last March? It was looking like the contagion was going to spread, until the Fed created an emergency lending program to shore up troubled banks - the Bank Term Funding Program (BTFP) We didn’t hear about bank collapses for awhile. Guess what. That program is about to expire.

Small and regional banks hold about 80% of commercial real estate debt and may not be able to handle the potential coming losses without the BTFP. We could see many more banks begin to collapse very soon.

Pension funds, hedge funds and mutual funds that have deep exposure to commercial real estate could be facing a nightmare of losses and write downs. Think mortgage-backed securities, but commercial. How many portfolio managers bought these up when they looked solid and they desperately needed returns? How much exposure does YOUR portfolio really have, if you dig deep? Many pension funds have more than half of their assets in commercial real estate.

We will continue to keep an eye on commercial real estate in the coming months.

In the mean time, is your portfolio properly balanced and diversified in case of significant losses across one sector like commercial real estate? Why not consider an allocation of precious metals today? When is the best time to buy? Well, 5 years ago when you could have gotten it for $1200 an ounce… The next best time is today. Read our report $3200 Gold to see why we think the price of gold is going up long term. Call us NOW before it does!

Secure Your Retirement with Gold

Free 2024 Gold Kit
Gold Kit
Lear does not provide financial advice and is a for profit retailer.
We respect your Privacy