Tuesday, December 15, 2009

Bank Failures Reach New Records in 2009

From Mish Hedlock, a stunning chart, 159 bank failures:

Sheila Bair said she’s concerned that U.S. banks are making only the safest loans, and encouraged the companies to step up their pace of lending. But why aren't the banks lending?

Mish says:

1. There are no credit-worthy businesses that want to borrow.
2. Consumers are tapped out and do not want to borrow.
3. Banks are scared to death of pending commercial real estate losses, credit card losses, residential real estate losses, home equity lines of credit losses, and losses in general.
4. Asset prices are simply too high (and banks know it) and the securitization market has dried up"

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