Bad Bank Loans Hit Record High

nytimes.com:

Overall loan quality at American banks is the worst in at least a quarter century, and the quality of loans is deteriorating at the fastest pace ever, according to statistics released this week by the Federal Deposit Insurance Corporation.

Read the whole story: nytimes.com

Comments

[nomoredead]

But , but....Jim Cramer said friday that houses have hit the bottom and everything if going to be great.

Buy, buy, buy.....

[WonderingNThinking]

Cool. Maybe someone will buy my house.

P.S. I forsee another Cramer appearance on the Daily Show.

[maxmcgloin]

After Trillions in bailouts, free money from the Fed Rate the banks are still getting worse. Meanwhile the the rest of us are still screwed too.

[HMDMSR]

Not to worry, extremely ethical Harvard MBA's will rescue us:

http://www.huffingtonpost.com/2009/05/30/harvard-business-schools_n_209372.html

[tomsowell]

You leftists always blame everyone but Obama......Wall Street is Democrats.....The major banks receiving your tax money are Obama's biggest campaign donor's(This is just payback)...GE another one waiting for you....Have you not read Rules For Radicals...To promote change (Socialism) you have to win the hearts of the poor,and uninformed(Liberals)

[hippiesandwich]

Never let the facts get in the way...

http://www.nowpublic.com/politics/john-mccains-biggest-contributors-have-look

[markm8128]

Funny...even after Republicans trashed the entire global banking system, and the US and international economies....there are still a few shamelss right-wing nutcases blaming Obama for tyring to fix the mess.

Bush spent massive amounts of money on tax rebates, bailing out AIG, Bear Stearns, Fannie Mae and Freddie Mac, the US banks, and GM. You guys said nothing. Wall Street didn't get behind Obama until after he won.

Why didn't you start holding your tea-parties back when Bush was ramping up federal spending, and increasing the size of government to record levels?

[FreedomCorpse]

Don't look at the derivatives monster behind the curtain that were massively leveraged bets made against these bad loans. If only it was just some bad loans....

[ibsteve2u]

The story: "Loans to businesses — called commercial and industrial loans — also appear to be doing better than they did in the early 1990s. That could reflect the fact that many such loans are no longer on bank balance sheets, having been sold into the securitization market. Some analysts also fear a wave of defaults on these loans."

That is like the waiter saying: "Hey, just a heads-up: Some of the entrees have botulism, but I don't know which ones. Now, may I take your order, please?"

"having been sold into the securitization market" makes me laugh, too. I am not aware of any other way you can get away with selling non-existant assets - any that people don't call Ponzi schemes, anyway.

That is also a characteristic of "Big Money", the right and the Party that they own together: Their money-making schemes - however perfidious they may be - are justifiable and thus should be legal in their opinions because they make money at it.

What a trick of perspective, that. Any behavior, no matter how unethical, immoral, and even corrupt, is "OK" in Republican eyes, as long as they - THEY - profit from it.

But if it is something that benefits "the Average American"...lolllll...

[themodernleader]

Hailmarrry. The economic premise that the Bush-Obama Team bases its nation destroying policy is false. That assumption is that all the big banks, about 19, are indispensible and must be made viable at any cost, even at the destruction of the American currency. The fact is we need half or even fewer of the present banks in our financial system who's present authority is not only to lend but do those other shennigans that subtract from American economic sustenance for the embellishment of paper shufflers, speculators and debt generators.
Operating an entire economy on false assumptions is courting disaster.
Around these parts there is almost literally a bank on every corner---empty of customers. Our wealth is squandered on a corrupt and corrupting institution while our citizens are fired from once vital industries and productive enterprises.

[tomsowell]

CORRECT...move to the front of the class

[Name Not In Use]

Here's a great way to immediately reduce the number of "BAD LOANS".

"The maximum rate of interest that can be charged for any contractually obligated indebtedness in the United States of America is 15%."

[tomasedison]

you are a smart man Yoda, that usury cap would go a long long way towards ending all the cc monkey business - it would inject sanity bank into the banking segment again

[tomsowell]

Funny how all the bailouts have went to Obama supporters(Banks,Unions,Acorn,)Looks like the Dems are the party of the rich.

[Name Not In Use]

Check the facts. Those guys have greased every palm inside and outside the beltway. Republican, Democrat, straight, gay, winners, losers ... doesn't matter. When you are lining up to collect 3 trillion dollars bribes to politicians are chump change.

Unfortunately ... WE are the chumps.

[tomsowell]

Obama got the most ever from these guys...Im somewhat on your side(I want my money)

[dadw5boys]

BANKS WERE BUSHWACKED !!!!!!!!

Americans learn so slowly.

Put a Bush anywhere near the Whitehouse and the Banks crash.

.

[Name Not In Use]

I do not see how you can blame this on the pittosporum.
Talk about wacky conspiracy theories.

[themodernleader]

Economies don't collapse without causes. And they are not put back together again with a printing press, signature to IOUs, and high sounding words that signify nothing in raw reality. The most forbidding and heart breaking decision is to change or drop a policy that is a failed policy. Eeric Hoffer offered this appropriate aphroism: "The greatest loneliness is the loneliness of a failure. Failure is a stranger in its own house."
Probably, Obama will not change course until all the wild horses are out the barn, and Congressional leaders en masse demand that he find a new economic team or be subject to articles of impeachment and removal. Things will get that bad.
If I were close to the Almighty, I would plead with His Holiness every night to intervene and save our Republic. But Catholic John F. Kennedy was right when he averred that "God helps only those who help themselves." We have failed miserably in that responsibility. So failure is our ignominy.

[tomsowell]

Good comment ,but I dont believe we needed to print money...There was alot to do,we just didnt do it

[MIKEBC]

Bad banks, bad loans, and for the last 8 years, bad political party in charge!

[DLBSR]

The banks have not yet experienced the literal definition of bad loans and todays record high could well be this years low in termsof bad loans. I say this because we have just begun to experience the real meltdown that Treasury and the banks know is coming. Starting in January of this year through all of 2010 and even into early 2011, another two groups of exotic adjustable mortgages almost everyone forgot about, start resetting. Those are Alt A and Option ARM’s. Coupled with the subprime 5/1 ARM’s we already knew about, they total 180% more than the subprime 3/1 ARM’s we’ve already worked through. Total value of these two additional subprime tsunamis = approximately $1.8 trillion. Up to 70% are predicted to default leaving the taxpayers holding the bag for an estimated $1.2 trillion. 60 Minutes recently ran a special segment on the forgotten “second wave” that is about to rip further into the already fragile U.S. housing market and overall economy. Here’s the link to that video......... http://clicks.aweber.com/y/ct/?l=KRcBJ&m=1cIO3fczvZvOs5&b=i.4UDfv_LRhv43yAJeHx2g

[Hailmaryyy]

"Washington needs to wake-up. Their efforts so far may have prevented imminent collapse of a major bank, but little else. If this trend is not reversed it is only a matter of time before the big banks face a new crisis. Homes are selling at these prices because not enough Americans can access mortgages. The only solution available to the country is massive quantitative easing. Without it assets prices will continue to deteriorate and job losses will continue to mount. Those afraid of runaway inflation need to contemplate whether or not that is preferable to runaway deflation."

http://www.escapethenewgreatdepression.com

[JaneQCitizen]

That's because the banks are NOT working with homeowners about to get into trouble.

A neighbor called their mortgage company and the bank employee said "you're not behind, so Obama's plan doesn't apply to you". That is an absolute lie and I told my neighbor. He called back and the bank said "oh yeah. we can help you --- with a $3,000 refi package." Oh, and there was a $500 NON-refundable application fee. If the refi didn't go through, our neighbors are out $500.

[dadw5boys]

That fee is for the Appraisal .

[JaneQCitizen]

We can tell them it's 10% than last year. I think my neighbors are going to walk away. It's a shame. They're good people. who have lived there for 6 years. The fellow was laid off a year ago.

[hippiesandwich]

Chase took $750 from me on a "slam dunk" re-fi and I got $350 back when it fell through.