so if the fed rate is high you have a high base interest rate, effectively the price you can pay for the house drops because now you have to pay more interest, which means that, if you ve got a fixed monthly payment, you can now afford to buy a house for less money. it effectively drops the prices of houses. tucker: yes. this is the kind of thing that tends to accelerate. so then you can get negative equity in the home market as well. and so if banks end up having loan losses in both their commercial and well they re definitely going to have loan losses in their professional portfolio but in their mortgage portfolio, this is a dire situation. there is a solution to mitigate the magnitude of the damage here, which is for the fed to lower the rate. but they raised the rate again. now, if i recall correctly,
threat today thursday, friday. if you live in these areas, i want you to make sure you know where you are going to get your warnings around warnings. fox weather.com will always help you out with that okay, brian kilmeade, over to you. brian: thank you very much for that this is our first hello today. janice: hi, good to see you. you look lovely. brian: see you tomorrow when you toss back. janice: i will see you in the green room. brian: dereliction of duty. senators accuse mayorkas of putting migrant children in danger. they are commanding answers. next hour we will talk about that. plus, elon musk s dire prediction for real estate. if banks end up having they are definitely going to have commercial portfolio also in the mortgage portfolio this is a dire situation. brian: yeah, not good. we ask cheryl casone to come walk our direction. how worried should would he be? we will find out next. hey, girl. put that body on me like i hit the lottery
the mortgage portfolio, this is a dire situation. we really haven t seen the commercial real estate shoe drop. that s more like an anvil, not a shoe. but that will become a very serious thing later this year in my view. rachel: one of the world s richest men sharing a dire prediction about the u.s. economy. elon musk warns the collapse of some major banks could indicate a devastating real estate crash is ahead. fox business cheryl casone joins us now. great to have you on this. he says expect something major to happen this year. cheryl: a lot of analysts are warning the same thing. slow-moving train wreck is the best way to describe what we re looking at right now. this year and next, a lot of these commercial real estate properties, their loans are coming due. interest rates are now double what they were a year ago. we are seeing more default, more delinquencies and what he is saying is true. small and medium size banks own
money and then to negotiate how much and on what terms to repay. 0ur banks work on a stable and firm basis. they have enough tolerance margin. the output, the amount of loans to the corporate sector grew last year. there was a lot of controversy, there was a lot of doubt about that but it has been recorded, that growth is 14%, more than in 2021. in 2021, the growth was 11.7%. now it is 14%. the mortgage portfolio has also grown. by mortgage portfolio has also grown. by 14%. mortgage portfolio has also grown. by 2.4%. last year the banking sector made a profit, less than the