specks

Banks' Problem Loans Keep Growing

I've just finished Friedman/Schwartz and a follow-up by an author who's name escapes me. The banks that collapsed in the 30's did so late in the cycle. Don't forget that the bank "HOLIDAYS" largely took place in '33. And the latter author wrote, "Banking unrest in Pittsburg, Philadelphia, and especially Chicago was directly related to depreciated real estate values in 1931." Also, "The absence of statistics on the default rate on real estate loans, both farm and non-farm, prevents any assessment of the risks involved in real estate lending."
So I keep in mind the 'dustbowl' and the farmers out west losing their crops. Plus we know there was high unemployment and you need a job to pay for a house. 1 in 3 without a job!! Moreover, if you want to keep something secret, don't write about it in the papers!