Sorry for those who took umbrage at my last blog (State of Denial), but facing up to reality is the first step towards recovery. Despite the few outliers, most people in the industry understand the parlous environment and are taking steps to get through the next several difficult years. As noted before, those in jeopardy are limited to the group who overpaid and over-leveraged during the 2005-2007 period when prices were spiraling out of control. The only difference between sub prime borrowers and many of these commercial investors is the commercial investors fashioned themselves as much smarter. Otherwise, owners in well-leased portfolios with rational leverage will navigate sagging fundamentals albeit taking some significant haircuts along the way.