GlobeSt.com: So Tim, you think people are joining thepositivity train a little early?

Mazzetti: There's a significant amount of distressin commercial real estate. If it doesn't look not as bad now, it'sbecause the government has done a lot to kick the can down theroad, to prevent the banks from failing in larger numbers, bychanging the rules of the game. For example, in an October 2009edict, banks can take a loan that cannot be refinanced, where theunderlying property may be worth half of the outstanding loanamount, and can extend it and call it a "performing" loan withouthaving to take a charge to their core capital so long as the cashflow from the property covers the debt service payments. Thispractice cannot go on indefinitely.

GlobeSt.com: What's your view of today's real estatefinancial picture?

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