Yes, yes. Everything is good in the world. Except that banks have been quietly sucking wind for quite some time and their collective instability is daunting. Sez Bloomberg:
More than 150 publicly traded U.S. lenders own nonperforming loans that equal 5 percent or more of their holdings, a level that former regulators say can wipe out a bank's equity and threaten its survival.
The number of banks exceeding the threshold more than doubled in the year through June, according to data compiled by Bloomberg, as real estate and credit-card defaults surged. Almost 300 reported 3 percent or more of their loans were nonperforming, a term for commercial and consumer debt that has stopped collecting interest or will no longer be paid in full.
Expect great things in future from Friday FDIC announcements.
Toxic Loans Topping 5% May Push 150 Banks to Point of No Return [Bloomberg]