In an interview on CNBC's Squawkbox this morning, COP chair Elizabeth Warren said simply, "Well it's bad."

Then she explained, "We're looking at a situation where about half of all commercial real estate loans are going to be underwater by the end of this year, and that is going to have a direct impact on about 3,000 community banks, or about 40 percent of our entire banking system." Not good.

These, she notes, are mostly community banks, which do a disproportionate amount of commercial and small business lending. "To the extent that they get socked on the commercial real estate, they see these coming losses, so they tend to husband their money, and that means that the money is not available for their other customers, for the small businesses."