Today the FDIC will vote on how to liquidate large financial firms before they fail. So far, since Sept. 25, 2008 when Washington Mutual Inc. failed, 279 banks have collapsed. Speaking with Bill Isaac he questions if we can ever get rid of “Too Big To Fail”. He is not alone in that thought as many of my contacts both in my book and in my Rolodex have also questioned it. fragile
The pace of bank failures has me talking to contacts about the tightly knit relationship between real estate and housing. With foreclosures continuing to soar you have to wonder how many more banks will fail? Many banks are continuing to “kick the can” down the road until real estate values get better but how long can they kick until their leg falls off from exhaustion?
You know the saying, “Time heals all wounds”? I think while it may be trite to say it, the saying applies here. Like Ron Peltier says in his chapter it took years for the build up in the real estate sector and it will take years to correct. The band aid on real estate needs to be ripped off and air needs to heal the wound. Its going to be painful and I think people are finally realizing it.