--- title: Commercial Loans and Fun Blog | great inflation description: great inflation | George Blackburne, owner, offers insight into the commercial loans and mortgage industry in this Commercial Real Estate Loan Tips blog. --- [![c-loans-logo-2025](https://info.c-loans.com/hs-fs/hubfs/images/c-loans-logo-2025.png?width=183&height=86&name=c-loans-logo-2025.png)](https://c-loans.com) [Terms of Use](https://www.c-loans.com/terms-of-use) | [Disclaimer](https://www.c-loans.com/disclaimer) | [Blog](https://info.c-loans.com/) # Commercial Loans and Fun Blog ## [The Great Inflation is the Recession](https://info.c-loans.com/the-great-inflation-is-the-recession) Posted by [George Blackburne](https://info.c-loans.com/author/george-blackburne) on Wed, Aug 17, 2022 - [Tweet](https://twitter.com/share) ![Great Inflation](https://info.c-loans.com/hs-fs/hubfs/Great%20Inflation.jpg?width=300&name=Great%20Inflation.jpg)Today's Quick Commercial Loan Lesson: I saw an interesting commercial real estate loan package yesterday that enjoyed a very low loan-to-value ratio, something like just 40%.  Wow, 40% LTV. In addition, the borrowers' combined net worths exceeded the loan amount.  The [Net-Worth-to-Loan-Size Ratio](https://www.c-loans.com/net-worth-to-loan-size-ratio) exceeded 1.0.  Each borrower also had good credit.  It looked like a perfect deal to me. So why was this cherry loan coming to a hard money lender like [Blackburne & Sons](https://www.blackburneandsons.com/real-estate-loans/)?  Why wasn't some bank financing the deal?  The answer is that the seller was carrying back a second mortgage of 30% of the purchase price.   [![Apply For a Commercial Loan to Blackburne & Sons](https://no-cache.hubspot.com/cta/default/37671/34e9010d-6f3b-4979-93c2-9e705da5a9fc.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/34e9010d-6f3b-4979-93c2-9e705da5a9fc)   ![293445573_1924074577786862_2312952053567487272_n](https://info.c-loans.com/hs-fs/hubfs/293445573_1924074577786862_2312952053567487272_n.jpg?width=386&name=293445573_1924074577786862_2312952053567487272_n.jpg)   [![Earn 7% to 12% Interest](https://no-cache.hubspot.com/cta/default/37671/79a2ec15-7779-4852-8bfd-adbb3a74a4f2.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/79a2ec15-7779-4852-8bfd-adbb3a74a4f2)   Even though the combined loan-to-value ratio was only 70% - and our borrowers still had plenty of skin in the deal - no bank would ever consider such a loan.  Bank regulators essentially forbid banks from financing any commercial property with subordinate financing.  How about a credit union?  Hmmm.  Maybe.  Worth a call.  Where do you get a huge list of credit unions?  [CommercialMortgage.com](http://www.CommercialMortgage.com). This Great Inflation May be the Recession We've All Been Awaiting: After the stock market took a beating this past quarter, many of us have been expecting the start of another great recession.  Stocks would fall another 30%, and real estate would fall by 45% again, just like it did during the S&L Crisis, the Dot-Com Meltdown, and the Great Recession. Millions of Americans would lose their jobs in this expected great recession, and everyone would be short of cash.  Hundreds of thousands of companies nationwide would fail - just like they did during the last three great recessions.   [![Submit Your Loan to 750 Commercial Lenders Using C-Loans.com.  It's Free!](https://no-cache.hubspot.com/cta/default/37671/dcd11210-cbb0-42bd-b761-d0cb0da003c9.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/dcd11210-cbb0-42bd-b761-d0cb0da003c9) ![296912988_5375684365881885_2513431195639153578_n](https://info.c-loans.com/hs-fs/hubfs/296912988_5375684365881885_2513431195639153578_n.jpg?width=422&name=296912988_5375684365881885_2513431195639153578_n.jpg) [![Free List of 3,159 Commercial Lenders Sort By Your Own Criteria](https://no-cache.hubspot.com/cta/default/37671/a01b8f09-b66d-4255-af77-115a495e6559.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/a01b8f09-b66d-4255-af77-115a495e6559)   But maybe this time really is different.  Congress no longer fears deficits.  The Fed will buy just about any government bonds created by this deficit spending.  "Deficits no longer matter."  Yikes.  What could possibly go wrong? It may be time for us to consider the possibility that the Great Inflation is the great recession that have all been expecting.  By the way, this isn't my idea.  I read it in an article somewhere; but the suggestion makes sense. Great recessions are always evidenced by great economic pain.  Certainly this horrible inflation has been painful for all of us.   Trips to the nearby fast food restaurant now cost almost as much as a nice meal at Applebees used to cost.   [![Nine-Hour Video Training Course How to Broker Commercial Loans](https://no-cache.hubspot.com/cta/default/37671/2fa994cb-f6ac-4671-821f-b4bd48cb5f1f.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/2fa994cb-f6ac-4671-821f-b4bd48cb5f1f)   ![298543076_602835641208547_3257300350554300838_n](https://info.c-loans.com/hs-fs/hubfs/298543076_602835641208547_3257300350554300838_n.jpg?width=442&name=298543076_602835641208547_3257300350554300838_n.jpg) You should be willing to KILL to get loan servicing rights.  :-) [![Become a Direct Lender Approve Your Own Deals](https://no-cache.hubspot.com/cta/default/37671/3340a345-5631-4c56-940b-320f3d14bbda.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/3340a345-5631-4c56-940b-320f3d14bbda)   [![Get Both Video Training Programs For Just $849.](https://no-cache.hubspot.com/cta/default/37671/d0fb44bc-2893-4551-8a92-6a5080c4296e.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/d0fb44bc-2893-4551-8a92-6a5080c4296e)   But where's the stock market crash?  Maybe we have already seen it.   What about the crash in real estate values?  Values seem to have topped for the moment; but there may not be another leg down.  People who own nice real estate simply no longer want to sell at any price.  It's not a price issue.  People are starting to understand that they can no longer rely on the paper dollar to preserve wealth anymore. So is the pain of the current great recession appearing in the form of the Great Inflation?  Certainly this inflation has been like an enormous tax on us all.  I dunno.  Maybe.  Haha!  Just watch... the stock market will crash by 30% next week, home prices will crumble, and I will look like an idiot.  Remember, this theory wasn't my idea.   [![Video Course - How To Market For Commercial Loans](https://no-cache.hubspot.com/cta/default/37671/c1051bad-ef5d-4c65-b573-e4432b1769ef.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/c1051bad-ef5d-4c65-b573-e4432b1769ef)   ![Screen Shot 2022-07-28 at 9.32.22 PM](https://info.c-loans.com/hs-fs/hubfs/Screen%20Shot%202022-07-28%20at%209.32.22%20PM.png?width=399&name=Screen%20Shot%202022-07-28%20at%209.32.22%20PM.png)   [![Commercial Mortgage Brokers You're Doing It All Wrong](https://no-cache.hubspot.com/cta/default/37671/47353a06-ecdf-49ad-a26d-0bd2888fb186.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/47353a06-ecdf-49ad-a26d-0bd2888fb186)   Miscellaneous: Do you remember that exhilarating old Arnold Schwarzenegger movie, [Predator](https://www.youtube.com/watch?v=Vo3FmkleTEQ)?  It was in that movie where an alien, wearing dreadlocks and using the ability to be invisible, hunts humans as a sport and a right of passage. Hulu is now showing for free a prequel to Predator called [Prey](https://www.youtube.com/watch?v=wZ7LytagKlc), set in North America in 1713.   It has the same aliens, but the hero is a heroine - a very competent Indian maiden.  She fights this evil alien using an ancient bow, tomahawks, and her wits.  Outstanding movie.     [![Fee Agreement and Fee Collection Course. 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Now that I have mentioned it, see if you don't agree.   [![List of Commercial Lenders 2,500 For Just $79.95](https://no-cache.hubspot.com/cta/default/37671/9488a761-b4e6-4b02-b82c-4ccc932612bc.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/9488a761-b4e6-4b02-b82c-4ccc932612bc)   ![298376018_10159023808204537_9132579946365478519_n](https://info.c-loans.com/hs-fs/hubfs/298376018_10159023808204537_9132579946365478519_n.jpg?width=509&name=298376018_10159023808204537_9132579946365478519_n.jpg)   [![Free List of 200 Commercial Lenders](https://no-cache.hubspot.com/cta/default/37671/3da67ca8-0ae4-4537-a365-87388c9287a1.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/3da67ca8-0ae4-4537-a365-87388c9287a1)   [![Subscribe to the Commercial Loans and Fun Blog](https://no-cache.hubspot.com/cta/default/37671/a3bd32c3-bff3-4066-9ca8-2ec475fb5bbc.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/a3bd32c3-bff3-4066-9ca8-2ec475fb5bbc)     0 Comments [Click here to read/write comments](https://info.c-loans.com/the-great-inflation-is-the-recession#comments-listing) Topics: [commercial loans](https://info.c-loans.com/topic/commercial-loans), [great inflation](https://info.c-loans.com/topic/great-inflation) [All posts](https://info.c-loans.com/all) ### George Blackburne III Owner of C-Loans, Inc. ![George Blackburne III C-Loans Owner](https://info.c-loans.com/hs-fs/hubfs/George%20Head%20Shot%20Small%205%20by%207%20copy.jpg?width=158&name=George%20Head%20Shot%20Small%205%20by%207%20copy.jpg) ### Subscribe via E-mail ### Connect with C-Loans ## [![Get the Latest Scoop on C-Loans Inc.](https://no-cache.hubspot.com/cta/default/37671/bacfb58b-143e-40d7-b126-33c182b5b90b.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/bacfb58b-143e-40d7-b126-33c182b5b90b) C-Loans.com® is sponsored by  C-Loans, Inc. — For more information, contact Tom Blackburne 555 University Ave., Suite 150, Sacramento, CA 95825 Telephone: (916) 338-3232 x 317 * Tom Blackburne in Indiana: (574) 210-6686 * Fax: (916) 338-2328 Real Estate Broker -- California Department of Real Estate -- License Number 01330173 Arizona Dept. of Financial Institutions – License Number 0909472 The Florida Mortgage Brokers License Number: 0708758 [Read our many client Success Stories](https://c-loans.com/mortgage-brokers-overview/success-stories/) » © 2025 C-Loans, Inc. 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