Featured in Richard Suttmeier’s Stock Strategies Blog on EQUITIES Magazine Website
In Richard Suttmeier’s latest post,” Ignored Regulatory Guidelines Becoming Headline News”, Suttmeier outlines the cost of letting C&D and CRE exposures ride and how it is now haunting the banking system. The FDIC foresees more bank failures and the Housing Slum returns as the $8,000 first time home buyer tax credit disappears.
If banking regulators reined in C&D and CRE lending, bad loans and bank failures could have been prevented. Instead, however, the FDIC has a huge mop-up operation in place that will close 500 to 800 banks by the time the Great Credit Crunch ends in 2011 or 2012 at the earliest. Most of the 99 bank failures year to date and 124 since the end of 2007 had overexposures to C&D and/or CRE Loans. The FDIC will now need guidelines to modify commercial real estate loans, which will cost additional taxpayer dollars.
Meanwhile, Housing Starts remain weak. Housing completions declined 10.2% to a record low of 693,00 unit rate. The National Association of Home Builders are asking Congress to extend the $8,000 first time homeowner tax credit.
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About Richard Suttmeier:
Richard Suttmeier’s latest blog analyzes earnings from Intel, the most important technology stock, JP Morgan Chase, the most important “too big to fail” bank, and break-out’s for Comex copper and Nymex crude oil.
Richard Suttmeier is the chief market strategist for ValuEngine.com. Richard is an industry leader on the housing market and banking system and writes a newsletter covering The Great Credit Crunch. He produces a List of Problem Banks by name. He produces daily and weekly briefings covering the US Capital markets. Richard Suttmeier’s ValuEngine Four In Four video is available on forextv.com.
About EQUITIES Magazine:
Since 1951, EQUITIES has served both retail and institutional investors by examining industry trends, analyzing strategies and opportunities, and profiling financial leaders and emerging public companies. Its global audience increased dramatically after the launch of its European and digital versions, as well as its website, which provides free real-time market quotes and a free customizable, real-time portfolio-management interface. EQUITIES is also one of a select group of publications available on the Apple iPhone.
