CELENTE: Office Building Bust Will Make Banks Go Bust

Banks in the U.S. and Europe hold large portfolios of commercial real estate loans that are sinking in value day by day

Gerald Celente appeared on Clayton Morris’s “Redacted” on Thursday and warned that the Bank of Montreal’s recent 7 percent decline, due in part to a credit loss provisions surge, is just the tip of the iceberg for the sector.

The Trends Journal noted in this week’s issue that the bank is overexposed to commercial real estate loans. The bank said it will start to see a recovery “in 2025 as central banks cut interest rates and unemployment stabilizes which would ease some pressure for consumers and businesses falling behind on their loan repayments,” according to Reuters.

Celente sees an industry problem that has only just begun.

TREND FORECAST: The partial collapse and consolidation of the U.S. banking industry is underway, as we foresaw last year when we began to highlight the sector’s troubled future.