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Wall Street Breakfast: Must-Know News

The prime mortgage problem will be swamped by the commercial mortgage problem which is an order (s?) of magnitude higher and only now beginning to show itself. I don't doubt for a minute that the commercial bank failures will approach those of the '30s on a per capita basis. The total dollar exposure to the commercial mortgage market is considerably greater than the residential market and we are only now seeing the same issues arise.


On Aug 25 07:35 AM markfl wrote:

> "Mortgage lender Taylor, Bean & Whitaker formally filed for bankruptcy
> protection." From all I have read, Taylor's impact on home lending
> (via wholesale market) is potentially rather steep. If we are to
> trust J. Lounsbury's view seekingalpha.com/artic...,
> published today as a follow-up to his very popular banking article
> on SA several days ago seekingalpha.com/artic...,
> Colonial Bank and Taylor Bean may reflect a continuation of banking
> woes.
>
> The prime mortgage problem has eclipsed sub-prime, its not going
> away, and, according to John, bank failures may trump those during
> the Depression if measured on a per capita basis.