Monday, August 17, 2009

Serious Deterioration in Credit Data

Click on chart for larger view.

Q2 delinquency rates are up across the board, according to the latest Federal Reserve data.

Commercial real estate delinquencies (7.91%) are rising rapidly, and are at the highest rate since the early 1990's. Residential real estate (8.84%) and consumer credit card (6.7%) delinquencies are at the highest levels since the Fed started tracking the data back in 1991.

Put simply, there is no indication of recovery from this data, at all. Banks aren't pumping out money, and Bernanke is doing nothing to work around the "bankers' strike".

All indications continue to suggest that the second dip in this downturn is going to be very severe.

(Chart via Calculated Risk)

1 comment:

  1. On the issue of the "banker's strike", what's the Fed to do? They've already stuffed the banks full of reserves. One option would be that they could order/suggest that banks be less conservative and communicate similarly to OTS and FDIC regulators. Another option would be to circumvent the banking system by buying assets directly from the public. Which one of these options might or will the Fed choose?