Buried under the hysteria of a potential US default is the fact that we are stagnating but no one seems to grasp why that is. One of the reasons, a very important one, is that local and regional banks and their small business borrowers are bogged down with bad commercial real estate. In this article we discuss bank credit, banks and their real estate loans, the so-called "liquidity trap," and why the economy is not growing. It attempts to quantify the problem that local and regional banks have with their commercial real estate loans. We also explain how, why, and when the economy may grow again.