Busted: Bankers and The Global Economy

March 14, 2008

End of Mortgage Crisis in Sight?

Filed under: banking, credit, government, money — Tags: , , , , , , — digitaleconomy @ 6:46 am

The rating agency, Standard & Poor, said Wall Street is likely more than halfway through the write-downs it will have to record. “In many cases, it seems like banks have written off a lot more than actual losses are likely to be,” according to the agency.

This sounds like good news. Whether this is true remains to be seen. Based on the actions of the Fed, the mortgage crisis is a short-term issue, yet the FDIC projects the failure of several hundred banks in the next 2 years. The FDIC plays the “fear factor” down stating that more than a thousand banks were in danger back in 1992. Feeling better? ~ E.M.

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