levin70

Will Banks Lead the Way to 1929 Crash Part II?

Andy

Not all banks are heavily exposed to the four horseman of the housing apocalypse (IE, LV, AZ & FL). And even some large banks are not that heavily exposed. Thus even with significantly increased credit loss exposure for mortgages, cc, commercial and other loans their net interest margin more than offsets those provisions. They won't make big money, but they will eek out small profits so long as they lend at 5+% and their cost of funds are 0.25%.

Regards