This isn’t the sub-prime stuff, good people – these are the loans made to well-qualified people:
Serious delinquencies among U.S. prime mortgages rose nearly 20 percent in the third quarter from the prior quarter, as the percentage of current and performing mortgages fell for the sixth consecutive quarter, banking regulators said on Monday.
The report by the Office of Comptroller of the Currency and the Office of Thrift Supervision, which are part of the Treasury Department, covered about two-thirds of all U.S. mortgages.
It found 3.6 percent of prime mortgages — those made to the most credit-worthy borrowers — were seriously delinquent in the third quarter. That was more than double the year-ago quarter and up nearly 20 percent from the … second quarter.
The report defined “serious delinquencies” as those loans 60 days or more past due…
It isn’t getting better out there – not in the least. And with all the bubbles being built up by the Fed and central banks around the world (especially China) its just a matter of time before the second crash hits. To be sure, the fools who got us in to this mess can continue to play fast and loose with the money supply and, perhaps, keep the ball in the air for even as much as a year or two, but without wealth creation, we’re doomed to another crash. And the bad news is we can’t create wealth if governments are printing and borrowing like mad (any real gains in wealth will be wasted effort as money and debt rise faster).
Only a complete reversal can save the situation – we have to stop borrowing, stop printing and clear the decks to allow a bit of wealth creation and “clearing the decks” means, among other things, allowing “too big to fail” corporations to do just that.
HAT TIP: Mish’s
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