Bank Failures: 115 and Counting

Includes: FMCC, FNMA
by: Craig Brown

If my count is right and nothing more happens this evening, the FDIC took down 9 more banks today and I believe that is 115 for the year. Three or four years back we had zero closures for the year. Quite the change. Not S&P crisis levels in quantity, but the dollar values are right up there.

Continued Real Estate Woes

Remember Fannie Mae (FNM)? You should, because we own it. Lest you missed the news, virtually all new mortgages issued these days are ending up with the GSEs, either Fannie, Freddie (FRE) or Ginnie. In any event, it would appear they are not doing so well. Below is a chart I have borrowed from Calculated Risk and I link here the actual blog, which I highly recommend. As you can see from the chart, things are not going as well on the real estate front as the media would have you think. I cannot recall many charts this extreme.

What does this all mean? I think it means the market was right to go down today.
Disclosures: None.