July 14, 2024

FDICThe Federal Deposit Insurance Corp's chairwoman, Sheila Bair said last week hat the outlook for the ailing banking industry was bad – and getting worse. Bair said: ''We haven't seen the trough of the credit cycle yet.''

FDIC's latest quarterly assessment showed the number of bad loans at banks ballooned to its highest level in 15 years during Q2. Industrywide, bank earnings plunged 86% from April-June.

5 thoughts on “FDIC Warning . . . Banking Industry Getting Worse

  1. “we’re nearing a plateau” – this is wishful and dangerous thinking. We’re not even halfway through the subprime resets, and starting next year a wave of even more toxic Option ARMS will start resetting. Home prices will be falling for the next 10 years. Buy a home to ENJOY if you must, but don’t look at it as a get rich quick investment.

    LA Lawyer

  2. There’s an extremely simple way to avoid foreclosure: make your mortgage payments on time every month. If you are unwilling or unable to do so, then you will lose your house. This is exactly what you agreed to in the mortgage contract that you signed. Expecting the rest of us to “bail you out” is a morally indefensible position.

    San Diego Dentist

  3. Now I realize Greenspan probably kept interest rates too low after the the dot.com bubble and 9/11 and Congress may have been too aggressive in requiring banks to lend to ‘subprimers’ and Bush may have gone overboard with his ‘ownership society’ schemes but at the end of the day it was the American people that did this. No one was frogged marched down to a mortgage brokers office and waterboarded until they signed a loan to buy a house they could not afford. People did it to themselves. I was tempted too I admit and even looked at houses. Met an agent who had drawn up an offer. Looked it over and said ‘lemme think it over’. Called him back the next day and said ‘nope, don’t need a new house.

    Family Dental

  4. Why always blame somebody else? What happened to self responsibility and self accountability? If you cannot not afford the house payments then don’t buy a house. If you cannot qualify for a fixed-rate 30-year loan, then that means you are not qualified! It’s your responsibility to know how much you can afford. It’s as simple as that.

    San Diego Real Estate Agent

  5. This is all Obama’s and his leftist friends from Chicago fault. Individuals are walking away and not taking responsibility for their financial commitments. They know Obama and Co. won’t do anything. It’s his fault. I can’t wait for him to be defeated in November.

    San Diego Realtor

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