The eerie economic as well as political correlations/similarities to the period of the 1930's continues to gain momentum. Continuing high levels of joblessness, ineffective government spending programs, increasing federal entitlements, constitutionally questionable legislation…for those of us that are history fans it almost looks like 'play it again Sam'!
I guess only time will tell if we are truly smarter than our ancestors (like everyone seems to think!) and we can return to a thriving economic scenario in the short term. Although at this point the odds don't seem to favor that outcome. And I hope that we will not have to have another WWII to shake us out of our doldrums!
prb
From: S&Y PSG Morning Market Update for Wednesday March 31st
…the housing market, although showing signs of life, has yet to surprise anyone with its strength. Similarly, even with gains in the past few months, the US labor market is still very weak, jobs creation is anemic and most analysts do not expect the unemployment rate to decline appreciably over the next few years. In addition, inflation is virtually nonexistent. This suggests that economic growth will remain weak for some time, and rates/yields should not experience
undue upward pressure. Finally, the Fed will almost be forced to remain on the sidelines as long as unemployment remains so high.
Earlier today, Wednesday March 31, ADP reported its payroll change for March. The report showed an unexpected decline of -23,000 in ADP processed payrolls; i.e. job cuts. (The ADP data covers 365,000 of ADP’s non-farm clients
and represents approximately 24 million workers.) The market consensus had projected a rise of +40,000 in the March ADP data, so today’s report was a bit of a surprise. Presumably, US companies are still reluctant to start hiring until they have a higher degree of confidence in the sustainability of the US economic recovery, and can count on an appreciable rise in final demand.
The unexpected decline in the ADP payrolls creates nervousness in the markets on the eve of the Labor Department’s employment report scheduled for Friday (4/2) morning. Although the historical correlation between the ADP report and the “official” non-farm payroll report is not very strong, there is a general sense that if ADP payrolls are falling, perhaps the market expectation of payroll gains on Friday are overly optimistic. At the moment, the consensus estimate for March non-farm payrolls is for an increase of +184,000. If the consensus prediction is correct, it would be the first increase over +150,000 in monthly payrolls since March of 2007.
Wednesday, March 31, 2010
Wednesday, March 3, 2010
Wednesday March 3, 2010
Opportunity ahead….but how do we get there?
The fiscally responsible unraveling of the leverage that our economy has built up at all levels (city, county, state, federal, individual) as well as the world in general, will be the cornerstone of what may lie ahead… appropriate deleveraging while controlling inflation should be the goal. But as we continue to see our country does not seem to have the fiscal discipline to walk that path – we don’t even want to crawl on to it! We are so adverse to the ‘perceived’ level of pain that most assuredly must occur we continue to undermine what needs to be accomplished. And from the government’s perspective (at all levels) spending money is power and who wants to give that up…for the ‘greater good’ is today NOT tomorrow or so it appears the thought process has become!
The dam is leaking and the gum is running out! An uncharted and historic level of spending by our governmental bodies comes with a price – and who is willing to pay that price! As the cartoon character, Wimpy, from Popeye so brilliantly stated “I will gladly pay you Tuesday for a hamburger today” – was he a politician! Well, after we have eaten all of our hamburgers Tuesday is coming and there is a price that will have to be paid!
prb
Date: Wednesday, 3 Mar 2010
From: "Stone & Youngberg Portfolio Strategy Group"
- Yesterday's (2/3) Treasury market started out the day weaker and prices were under pressure until early afternoon when bids picked up and prices rose. The market shrugged off the progress reportedly made in resolving the Greek debt crisis, which should normally reverse the flight to quality, cause the dollar to weaken and Treasury prices to fall.
- The proximate cause of the market's firm tone was a rather pessimistic assessment of economic conditions in the latest Fed Beige book. Across the board, economic indicators were pointing to an anemic at best economic recovery; "consumer spending remained sluggish...dismal holiday spending season...conditions weakened for agricultural producers...drops in business loan demand...continued tight credit availability." Given where we are in the business cycle, roughly eight months since the presumed end of the recession (July 1), this Beige Book paints a bleak picture of the supposed recovery phase we are now in.
- Earlier today, Wednesday March 3, ADP reported their February payrolls had dropped by -20,000. This was in line with expectations and represents improvement from the January payroll drop of -60,000. Although the ADP data is prone to sometimes appreciable revisions, it is nonetheless viewed as providing insight into the Bureau of Labor Statistics national unemployment data released two days hence on Friday.
- The Treasury market is weaker this morning (3/3) across the curve. Prices are fading today partially as a consequence of a pull back from the rally in Treasuries over the past week. In addition, the soon to be resolved Greek crisis has served to reverse the flight to quality. The 30 year long bond is down -¼ of a point and the yield is 4.58%. The 10 year UST is also off -¼ of a point and the yield is now 3.63%. By way of perspective, one week ago on Wednesday Feb. 24, the 10 year was yielding 3.69%. The short end of the market is slightly weaker the 2 year UST is yielding 0.80%.
The fiscally responsible unraveling of the leverage that our economy has built up at all levels (city, county, state, federal, individual) as well as the world in general, will be the cornerstone of what may lie ahead… appropriate deleveraging while controlling inflation should be the goal. But as we continue to see our country does not seem to have the fiscal discipline to walk that path – we don’t even want to crawl on to it! We are so adverse to the ‘perceived’ level of pain that most assuredly must occur we continue to undermine what needs to be accomplished. And from the government’s perspective (at all levels) spending money is power and who wants to give that up…for the ‘greater good’ is today NOT tomorrow or so it appears the thought process has become!
The dam is leaking and the gum is running out! An uncharted and historic level of spending by our governmental bodies comes with a price – and who is willing to pay that price! As the cartoon character, Wimpy, from Popeye so brilliantly stated “I will gladly pay you Tuesday for a hamburger today” – was he a politician! Well, after we have eaten all of our hamburgers Tuesday is coming and there is a price that will have to be paid!
prb
Date: Wednesday, 3 Mar 2010
From: "Stone & Youngberg Portfolio Strategy Group"
- Yesterday's (2/3) Treasury market started out the day weaker and prices were under pressure until early afternoon when bids picked up and prices rose. The market shrugged off the progress reportedly made in resolving the Greek debt crisis, which should normally reverse the flight to quality, cause the dollar to weaken and Treasury prices to fall.
- The proximate cause of the market's firm tone was a rather pessimistic assessment of economic conditions in the latest Fed Beige book. Across the board, economic indicators were pointing to an anemic at best economic recovery; "consumer spending remained sluggish...dismal holiday spending season...conditions weakened for agricultural producers...drops in business loan demand...continued tight credit availability." Given where we are in the business cycle, roughly eight months since the presumed end of the recession (July 1), this Beige Book paints a bleak picture of the supposed recovery phase we are now in.
- Earlier today, Wednesday March 3, ADP reported their February payrolls had dropped by -20,000. This was in line with expectations and represents improvement from the January payroll drop of -60,000. Although the ADP data is prone to sometimes appreciable revisions, it is nonetheless viewed as providing insight into the Bureau of Labor Statistics national unemployment data released two days hence on Friday.
- The Treasury market is weaker this morning (3/3) across the curve. Prices are fading today partially as a consequence of a pull back from the rally in Treasuries over the past week. In addition, the soon to be resolved Greek crisis has served to reverse the flight to quality. The 30 year long bond is down -¼ of a point and the yield is 4.58%. The 10 year UST is also off -¼ of a point and the yield is now 3.63%. By way of perspective, one week ago on Wednesday Feb. 24, the 10 year was yielding 3.69%. The short end of the market is slightly weaker the 2 year UST is yielding 0.80%.
Thursday, February 25, 2010
A bridge over troubled waters
'A bridge over troubled waters' - I think that would be my summation of our
economic situation at the present time...
Turbulence, unexpected data releases, market volatility, artificially pegged
short rates, debt, debt and more debt...at least it appears that the consumer
(whether forced to or not) has been steadily decreasing their personal debt
levels - now if we could only convince our 'wise and wisdom filled' legislators
(at all levels) to do the same - cut and control spending!
prb
Subject: S&Y PSG Morning Market Update for Thursday February 25th
Date: Thu, 25 Feb 2010 07:17:35 -0800
From: "Stone & Youngberg Portfolio Strategy Group"
* The Treasury market was little changed yesterday as their was no significant economic releases providing an impetus for investors to reassess their views. On the day, the 2-year note was the big mover, with its yield rising 3 basis points to 0.867%. Other yields across the curve changed less than 1 basis point. At the close, the yield on the 3, 5, and 10-year notes was 1.405%, 2.354%, and 3.693% respectively. In overnight trading, yields are lower by 2 to 4 basis points across the curve as weaker equity prices and the ongoing concerns regarding the debt situation in Greece, push investors to the relative safety of U.S. Treasuries.
* This morning the Commerce Department reported that orders for durable goods rose 3.0% in January, driven largely by orders for aircraft which rose 126% on the month. When the impact of aircraft and other transportation related goods are excluded, durable goods fell by a surprising 0.6% in January. Declines were seen across both orders and shipments for non-defense related goods as orders excluding aircraft were down 2.9% and shipments excluding aircraft were down 1.5%. The weak durable goods report underscores a theme we have been advancing that while the economy is slowly recovering from the depths of the recession, the rebound will be tepid by historical standards.
* The Commerce Department also reported this morning that initial jobless claims rose 22,000 to 496,000 last week. The snow storms across the mid-west and east coast were significant contributors to the rise in claims. With the February non-farm payroll report slated for release next week, analysts will be closely reviewing the report for the impact the storms had on the employment data.
* Yesterday, data on new home sales were released by the Commerce Department, showing sales falling to a record low of 309,000 in January. The decline in sales represents an 11.2% decline from December's revised 348,000 in sales. Accompanying the report was data showing that the median sales price for new homes declined 2.4% on a year-over-year basis. The report underscores the fragility of the recovery in housing.
While home prices in most areas are no longer in a "free-fall", support for housing has largely been drawn from government programs such as the home buyer tax credits and the Federal Reserve's MBS purchase program.
* The CEO of Freddie Mac underscored the uncertainties facing the housing market this year in a statement noting "the housing recovery remains fragile, with significant downside risk posed by high unemployment and a potential large wave of foreclosures." The considerable amount of seriously delinquent loans in GSE portfolios, and the GSE's plans to buy those loans out of its guaranteed MBS have weighed on the performance of the mortgage sector, with higher coupon Fannie Mae MBS significantly underperforming the market over the past two weeks.
economic situation at the present time...
Turbulence, unexpected data releases, market volatility, artificially pegged
short rates, debt, debt and more debt...at least it appears that the consumer
(whether forced to or not) has been steadily decreasing their personal debt
levels - now if we could only convince our 'wise and wisdom filled' legislators
(at all levels) to do the same - cut and control spending!
prb
Subject: S&Y PSG Morning Market Update for Thursday February 25th
Date: Thu, 25 Feb 2010 07:17:35 -0800
From: "Stone & Youngberg Portfolio Strategy Group"
* The Treasury market was little changed yesterday as their was no significant economic releases providing an impetus for investors to reassess their views. On the day, the 2-year note was the big mover, with its yield rising 3 basis points to 0.867%. Other yields across the curve changed less than 1 basis point. At the close, the yield on the 3, 5, and 10-year notes was 1.405%, 2.354%, and 3.693% respectively. In overnight trading, yields are lower by 2 to 4 basis points across the curve as weaker equity prices and the ongoing concerns regarding the debt situation in Greece, push investors to the relative safety of U.S. Treasuries.
* This morning the Commerce Department reported that orders for durable goods rose 3.0% in January, driven largely by orders for aircraft which rose 126% on the month. When the impact of aircraft and other transportation related goods are excluded, durable goods fell by a surprising 0.6% in January. Declines were seen across both orders and shipments for non-defense related goods as orders excluding aircraft were down 2.9% and shipments excluding aircraft were down 1.5%. The weak durable goods report underscores a theme we have been advancing that while the economy is slowly recovering from the depths of the recession, the rebound will be tepid by historical standards.
* The Commerce Department also reported this morning that initial jobless claims rose 22,000 to 496,000 last week. The snow storms across the mid-west and east coast were significant contributors to the rise in claims. With the February non-farm payroll report slated for release next week, analysts will be closely reviewing the report for the impact the storms had on the employment data.
* Yesterday, data on new home sales were released by the Commerce Department, showing sales falling to a record low of 309,000 in January. The decline in sales represents an 11.2% decline from December's revised 348,000 in sales. Accompanying the report was data showing that the median sales price for new homes declined 2.4% on a year-over-year basis. The report underscores the fragility of the recovery in housing.
While home prices in most areas are no longer in a "free-fall", support for housing has largely been drawn from government programs such as the home buyer tax credits and the Federal Reserve's MBS purchase program.
* The CEO of Freddie Mac underscored the uncertainties facing the housing market this year in a statement noting "the housing recovery remains fragile, with significant downside risk posed by high unemployment and a potential large wave of foreclosures." The considerable amount of seriously delinquent loans in GSE portfolios, and the GSE's plans to buy those loans out of its guaranteed MBS have weighed on the performance of the mortgage sector, with higher coupon Fannie Mae MBS significantly underperforming the market over the past two weeks.
February 25, 2010
February 25, 2010
These times are truly amazing...when we look at what our 'wise and wisdom filled' congressional representatives ponder it makes one wonder how long the republic has left! For the clock is surely ticking...
Federal Reserve chairman Ben Bernanke gave a lesson once again in monetary policy to a still mystified House Financial Services Committee at a hearing on the Fed's semi-annual report to Congress today.
by Elizabeth MacDonald
PROF. BERNANKE INSTRUCTS CONGRESS--AGAIN
Is Fed’s Market-Timing State of the Art?
Not yet clear, because no one on the committee asked, is whether US taxpayers will ever get to see exactly what sludge they paid for in the AIG bailouts, where Goldman Sachs, Societe Generale, Calyon Securities and Merrill Lynch were made 100% whole on their trades with the toppled insurer.
The committee also did not give ample airing to the Fed’s exit strategy, in which it will need to dismount out of its very complex, very unorthodox, and very sizable intervention into the US economy, in which it has ballooned its balance sheet to $2 trillion from $800 billion pre-crisis, where it has junked up its financials with all sorts of asset-backed securities to rescue Wall Street.
Also not discussed are the Fed’s market-timing abilities, proven to be not so state of the art.
Can the Fed time the market right and make a profit selling these securities, many of which are underwater, to avoid losses? Since it took the Fed nearly two years to raise rates after the last two recessions, which exacerbated the bubble?
Can it do so when even Wall Street can't get it right, dancing deeper into paper refuse when their computer screens flashed red on subprime securities, proving artificial intelligence is no match for natural stupidity?
Fannie and Freddie Take Over Quantitative Easing
While the Fed has already ended all sorts of credit facilities for the financial sector, it’s clear Congress intends Fannie Mae and Freddie Mac will now take over the role of lending support to the US economy, as the Congress authorized for them an open-ended line of credit, previously capped at $400 billion, in the dead of night last December.
The House hearing of course didn’t give much time to discussing the impact of this blank check given to two of the worst offenders in the government distorted housing market which is getting a government bailout.
Hot Molten Evil
Because this is the same House Committee—Frank, Waters, et al--that chastised critics as hot molten evil if they dared come before it to tell the truth about Fannie and Freddie.
The Fed chairman didn’t quite fully address Fannie and Freddie reform, meekly noting something about the two being a private but yet maybe a public utility (my head just exploded), because again the representatives didn’t really fully give this issue an airing.
“Crap-ital Standards”
Although Rep. Randy Neugebauer of Texas did ask what the Fed was doing about bank reform in the way of tightening, as he unintentionally though aptly put it, bank “crapital standards.”
Standards which Congress seems to follow, as Bernanke noted once again that it’s “very important for Congress and the Administration to have a credible plan to bring the government back to a sustainable position on deficits,” since “basic arithmetic shows that interest payments on the debt would go higher and spiral out of control,” noting the Congressional Budget Office came up “with the same results.”
"Governments Jobs Are Not Productive"
To which the Fed chairman also said that while fiscal stimulus has created jobs, “you don’t want to create government jobs that are not productive.”
Deficit Spending Hurts Markets Now
This deficit spending problem “is not 10 years away, it affects the markets today,” Bernanke replied to a question to Rep. Ed Royce (R-Calif.), the only person on the committee who appears to not be a few peas short of a casserole, upon which committee chairman Barney Frank (D-Mass.) cut off this line of questioning.
These times are truly amazing...when we look at what our 'wise and wisdom filled' congressional representatives ponder it makes one wonder how long the republic has left! For the clock is surely ticking...
Federal Reserve chairman Ben Bernanke gave a lesson once again in monetary policy to a still mystified House Financial Services Committee at a hearing on the Fed's semi-annual report to Congress today.
by Elizabeth MacDonald
PROF. BERNANKE INSTRUCTS CONGRESS--AGAIN
Is Fed’s Market-Timing State of the Art?
Not yet clear, because no one on the committee asked, is whether US taxpayers will ever get to see exactly what sludge they paid for in the AIG bailouts, where Goldman Sachs, Societe Generale, Calyon Securities and Merrill Lynch were made 100% whole on their trades with the toppled insurer.
The committee also did not give ample airing to the Fed’s exit strategy, in which it will need to dismount out of its very complex, very unorthodox, and very sizable intervention into the US economy, in which it has ballooned its balance sheet to $2 trillion from $800 billion pre-crisis, where it has junked up its financials with all sorts of asset-backed securities to rescue Wall Street.
Also not discussed are the Fed’s market-timing abilities, proven to be not so state of the art.
Can the Fed time the market right and make a profit selling these securities, many of which are underwater, to avoid losses? Since it took the Fed nearly two years to raise rates after the last two recessions, which exacerbated the bubble?
Can it do so when even Wall Street can't get it right, dancing deeper into paper refuse when their computer screens flashed red on subprime securities, proving artificial intelligence is no match for natural stupidity?
Fannie and Freddie Take Over Quantitative Easing
While the Fed has already ended all sorts of credit facilities for the financial sector, it’s clear Congress intends Fannie Mae and Freddie Mac will now take over the role of lending support to the US economy, as the Congress authorized for them an open-ended line of credit, previously capped at $400 billion, in the dead of night last December.
The House hearing of course didn’t give much time to discussing the impact of this blank check given to two of the worst offenders in the government distorted housing market which is getting a government bailout.
Hot Molten Evil
Because this is the same House Committee—Frank, Waters, et al--that chastised critics as hot molten evil if they dared come before it to tell the truth about Fannie and Freddie.
The Fed chairman didn’t quite fully address Fannie and Freddie reform, meekly noting something about the two being a private but yet maybe a public utility (my head just exploded), because again the representatives didn’t really fully give this issue an airing.
“Crap-ital Standards”
Although Rep. Randy Neugebauer of Texas did ask what the Fed was doing about bank reform in the way of tightening, as he unintentionally though aptly put it, bank “crapital standards.”
Standards which Congress seems to follow, as Bernanke noted once again that it’s “very important for Congress and the Administration to have a credible plan to bring the government back to a sustainable position on deficits,” since “basic arithmetic shows that interest payments on the debt would go higher and spiral out of control,” noting the Congressional Budget Office came up “with the same results.”
"Governments Jobs Are Not Productive"
To which the Fed chairman also said that while fiscal stimulus has created jobs, “you don’t want to create government jobs that are not productive.”
Deficit Spending Hurts Markets Now
This deficit spending problem “is not 10 years away, it affects the markets today,” Bernanke replied to a question to Rep. Ed Royce (R-Calif.), the only person on the committee who appears to not be a few peas short of a casserole, upon which committee chairman Barney Frank (D-Mass.) cut off this line of questioning.
Thursday February 25, 2010
A slow and sluggish return for the housing market appears to be the forecast. Arizona has some fundamental fiscal issues that will have to be worked through before a 'bull' market can return. In the mean time empty commercial real estate and continued foreclosed residential properties will dot the landscape of our fair metro area.
Real Estate: Your local forecast
381 markets tracked
By Sept. 30, 2011, the national median home price is expected by fall by about 6%. Check the predictions for your city.
Phoenix-Mesa-Scottsdale, AZ
Forecast change: Sept. 30, 2009 – Sept. 30, 2010 -22.2%
Forecast change: Sept. 30, 2010 – Sept. 30, 2011 -2.7%
Market fundamentals
Median Family Income $64,200
(2008)
Median Home Price $140,000
(Third quarter 2009)
Change in Home Prices -21.2%
(From third quarter 2008 thru third quarter 2009)
Worst 1-Year Home Price Change -35.7%
(First quarter 2009)
(time period 1980-2009)
Real Estate: Your local forecast
381 markets tracked
By Sept. 30, 2011, the national median home price is expected by fall by about 6%. Check the predictions for your city.
Phoenix-Mesa-Scottsdale, AZ
Forecast change: Sept. 30, 2009 – Sept. 30, 2010 -22.2%
Forecast change: Sept. 30, 2010 – Sept. 30, 2011 -2.7%
Market fundamentals
Median Family Income $64,200
(2008)
Median Home Price $140,000
(Third quarter 2009)
Change in Home Prices -21.2%
(From third quarter 2008 thru third quarter 2009)
Worst 1-Year Home Price Change -35.7%
(First quarter 2009)
(time period 1980-2009)
Wednesday February 24, 2010
interesting article attached.....with Nevada leading the way and AZ in second place but 'trying harder'.......
how much more of this is there to go???
Looks like AZ won't be leading the way to recovery nor the quickest to bounce back ! ! !
Wednesday, February 24, 2010, 10:05am EST
Fla. ranks third in underwater mortgages
South Florida Business Journal
The state of Florida has the third-highest percentage of homes under water, according to a report by Santa Ana, Calif.-based First American CoreLogic, a real estate information company,
Nationwide, more than 11.3 million, or 24 percent, of all residential properties with mortgages were in negative equity at the end of the fourth quarter, up from 10.7 million (23 percent) at the end of the third quarter, according to the report.
Negative equity, often referred to as “under water” or “upside down,” means that borrowers owe more on their mortgage than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.
Forty-eight percent of Florida's mortgages were under water. That translates to nearly 2.2 million of the more than 4.5 million mortgages. An additional 171,710 mortgages (3.8 percent) in the Sunshine State were near negative equity.
Only Nevada, which had 70 percent of all of its mortgaged properties under water, and Arizona, at 51 percent, had more. Michigan (39 percent) and California (35 percent) rounded out the top five.
The net increase in the number of negative equity borrowers in the fourth quarter was 620,000, with the largest percentage increases occurring in Nevada, Georgia and Arizona. Among the states with the highest negative equity shares, California had the smallest increase in the negative equity share, which only rose 0.4 percent, to 35.1 percent. In numerical terms, Florida had the largest increase in the number of negative equity borrowers, rising by more than 141,000, followed by Georgia (65,000) and Illinois (55,000).
"Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners," said Mark Fleming, chief economist with First American CoreLogic, in a statement.
First American CoreLogic’s data includes 47 million properties with a mortgage, which account for more than 85 percent of all mortgages in the U.S.
how much more of this is there to go???
Looks like AZ won't be leading the way to recovery nor the quickest to bounce back ! ! !
Wednesday, February 24, 2010, 10:05am EST
Fla. ranks third in underwater mortgages
South Florida Business Journal
The state of Florida has the third-highest percentage of homes under water, according to a report by Santa Ana, Calif.-based First American CoreLogic, a real estate information company,
Nationwide, more than 11.3 million, or 24 percent, of all residential properties with mortgages were in negative equity at the end of the fourth quarter, up from 10.7 million (23 percent) at the end of the third quarter, according to the report.
Negative equity, often referred to as “under water” or “upside down,” means that borrowers owe more on their mortgage than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.
Forty-eight percent of Florida's mortgages were under water. That translates to nearly 2.2 million of the more than 4.5 million mortgages. An additional 171,710 mortgages (3.8 percent) in the Sunshine State were near negative equity.
Only Nevada, which had 70 percent of all of its mortgaged properties under water, and Arizona, at 51 percent, had more. Michigan (39 percent) and California (35 percent) rounded out the top five.
The net increase in the number of negative equity borrowers in the fourth quarter was 620,000, with the largest percentage increases occurring in Nevada, Georgia and Arizona. Among the states with the highest negative equity shares, California had the smallest increase in the negative equity share, which only rose 0.4 percent, to 35.1 percent. In numerical terms, Florida had the largest increase in the number of negative equity borrowers, rising by more than 141,000, followed by Georgia (65,000) and Illinois (55,000).
"Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners," said Mark Fleming, chief economist with First American CoreLogic, in a statement.
First American CoreLogic’s data includes 47 million properties with a mortgage, which account for more than 85 percent of all mortgages in the U.S.
Tuesday, February 23, 2010
its just cyclical...
As we proceed through this time in our country's financial history we are seeing the paradox of government intervention. Too big to fail yet creating an atmosphere where bigger is just getting bigger! While our wise and wonderful Congressional representatives continue to write usurping laws and regulations that are squeezing the local community banks out of business. It truly takes a 'village' to enable a community bank to steer its way through the myriad of twisted and sometimes contrary regulatory directives - and the cost continues to mount. Look for the continued decline of the community banking sector as we proceed post haste into our new world order.
Don't look now but the laws and regulations just keep on coming...
Banks at risk of going bust tops 700
By David Ellis, staff writer CNN Money
February 23, 2010: 10:28 AM ET
NEW YORK (CNNMoney.com) -- More than 700 banks, or nearly one out of every 11, are at risk of going under, according to a report published Tuesday.
The Federal Deposit Insurance Corp. said that the number of banks on its so-called "problem list" climbed to 702, its highest level since 1992. At that time, the agency red-flagged 1,066 banks.
The number of banks under scrutiny by regulators has moved steadily higher since the recession began in late 2007. Just 76 financial institutions were on the list in the fourth quarter of 2007.
Banks that end up on the problem list are considered the most likely to fail because of difficulties with their finances, operations or management. Still, few of the lenders that are on the list actually reach the point of failure.
On average, just 13% of banks on the FDIC's problem list have been seized and shuttered by regulators. So far this year, 20 banks have failed, putting the FDIC on track to shutter at least as many institutions as it did in 2009. Last year, the FDIC seized a total of 140 lenders nationwide.
"Bank failures can be cyclical and I think as we have said, the pace is probably going to pick up this year," said FDIC Chairman Sheila Bair.
The names of the banks on the list are never made available to the general public by regulators out of fear that depositors at those institutions may prompt a so-called "run on the bank."
Don't look now but the laws and regulations just keep on coming...
Banks at risk of going bust tops 700
By David Ellis, staff writer CNN Money
February 23, 2010: 10:28 AM ET
NEW YORK (CNNMoney.com) -- More than 700 banks, or nearly one out of every 11, are at risk of going under, according to a report published Tuesday.
The Federal Deposit Insurance Corp. said that the number of banks on its so-called "problem list" climbed to 702, its highest level since 1992. At that time, the agency red-flagged 1,066 banks.
The number of banks under scrutiny by regulators has moved steadily higher since the recession began in late 2007. Just 76 financial institutions were on the list in the fourth quarter of 2007.
Banks that end up on the problem list are considered the most likely to fail because of difficulties with their finances, operations or management. Still, few of the lenders that are on the list actually reach the point of failure.
On average, just 13% of banks on the FDIC's problem list have been seized and shuttered by regulators. So far this year, 20 banks have failed, putting the FDIC on track to shutter at least as many institutions as it did in 2009. Last year, the FDIC seized a total of 140 lenders nationwide.
"Bank failures can be cyclical and I think as we have said, the pace is probably going to pick up this year," said FDIC Chairman Sheila Bair.
The names of the banks on the list are never made available to the general public by regulators out of fear that depositors at those institutions may prompt a so-called "run on the bank."
Subscribe to:
Posts (Atom)