Bank Charge Off Rate Percentage exceeds depression levels!

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Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Bank Charge Off Rate Percentage exceeds depression levels!

NEW YORK (Reuters) - The rate of loan charge-offs by major U.S. banks has exceeded those seen in the early years of the Great Depression as the credit crisis continues to take a toll, Moody's Investors Service said on Monday.

Bank charge-offs -- loans written off as uncollectable -- have reached $116 billion year to date, or 2.9 percent of outstanding loans on an annualized basis, Moody's said in a report. By comparison, bank charge-offs were.............

http://www.reuters.com/article/businessNews/idUSTRE59P3LM20091026 Here is the rest of the article.

And lets try to remember when banks have to write off these "losses" (losses they don't really have because they only loan a promise to pay) they write this off the top of their interest income which destroys our circulating medium of exchange making our economy even shorter on it's lifeblood (credit).  This is why we need The Minnesota Transportation Act that way we can put debt free, wealth based money into circulation so that way the people can pay their interest and stay in their homes and still give us a functioning medium of exchange.

 

docmims's picture
docmims
Status: Platinum Member (Offline)
Joined: Jun 17 2009
Posts: 644
Re: Bank Charge Off Rate Percentage exceeds depression ...

That is just the percentage they are "choosing" to write off.  They have so much delinquency that they can't afford to write it all off without showing such huge losses that they would out themselves as insolvent.

 

But it's ok the fed is saying the depression/recession is over.  Go on about your business. sheeple

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