It is clear however that even though the intent of the Fed’s zero interest policy is to have the banks lend money, the bank regulators don’t agree and the banks have no incentive to lend money when they can borrow from taxpayers at zero and invest with the same taxpayers at a positive rate.

One thing is for sure. A mortgage is strictly a business contract to the bank no matter which side of the mortgage they fall. Everyone else needs to treat the mortgage the same way.

The mortgages on these buildings were almost for sure non recourse mortgages so the lender knew the risk when theyade the loans.