The Wall Street Journal finally reported on something that investors and lenders have known for more than nine months. 

The rapid rise in interest rates has created a structural problem for commercial real estate. 

The issue goes far beyond the headline that nearly $1.5T in commercial real estate debt is vulnerable to default in the next three years. 

The punch line of the article is that lenders are prone to foreclosing on these loans because the issues with office occupancy are not likely to be resolved anytime soon. 

Unfortunately the simplified reporting completely neglects the fact that the lender is not some rich dude who can withstand the loss with no consequences to everyday citizens. 

The counter party risk that was present in 2008 is still present today. 

Why is that?