From: wyu@talisys.com
Newsgroups: misc.invest.financial-plan
Subject: Re: bank exposure to real estate loans
Date: Mon, 2 Jul 2007 21:39:52 -0500
   posting-account=VcEzXg0AAAARdptW1GwPJW6vq3r_8Xho
	iQBVAwUARom2+Pl/I4+O31e5AQGagwIAmFP+CYAHBt+IH+dhK1XphkXbB35sxf7P
	hqhGJxLzVWl0jTPWXPH0SjUb+vUwtCA1WzrXflnYKWn++b6zkapXJg==
	=DN9Y
Bytes: 2941

On Jul 2, 5:17 am, "Jan"  wrote:
> wonder what the impact to consumers will be when the full impact on banks lending
> habits is digested as banks apparently held about 25 percent of their total loans in
> real estate in the 1980s but as of now are holding total loans in real estate at the
> high percentage of almost 60. banks can't just unload this stuff and what will that do
> to banks overall health?

What the status will be on future homeowners/refinancers or home
prices, who knows. However, some banks will definitely go bust so
researching the stability of your bank and perhaps moving money
somewhere else may be a wise decision. While FDIC will pay you sooner
or later, they can take their time if it's a nationwide crisis. You
won't get a cent of interest while waiting -- and you certainly can't
pay your bills with FDIC IOUs. Vanguard money market holding US
Treasuries could be the safest place during a banking implosion.