Four more banks have gone kaput on Friday.
Pinnacle Bank of Oregon, Beaverton, OR February 13, 2009 February 13, 2009
Corn Belt Bank and Trust Company, Pittsfield, IL February 13, 2009 February 13, 2009
Riverside Bank of the Gulf Coast, Cape Coral, FL February 13, 2009 February 13, 2009
Sherman County Bank, Loup City, NE February 13, 2009 February 13, 2009
That's 13 banks in the last month and a half. I heard that before this is all over some 1000 banks will either be bought or simply vanish. I hate to sound like Dr. Gloom (there's already a blogger named Dr. Doom) but this is reality. There's too many bad loans not getting paid and not enough capital or income to cover the losses.
But here's a solution that might help everyone. To get a real value of a house at present go back about ten years. Take the value of the house then and add the rate of inflation which would be a 20 to 30 % increase from that point. That would be fairly close to the real value. Take the new valuation and subtract that from the current mortgage amount. The government gets to hold a note on 1/2 of the difference. The bank gets to write off the other half on an accelerated schedule. The mortgage gets refinanced at new lower rates and new valuation. After ten years the government can sell the note when the home value increases to an acceptable level. The note gets paid back when the home is sold or added to the mortgage when the refinanced mortgage is paid off. Don't laugh it just might work.
Or we could just go with the alternative. Let the foreclosures continue and bulldoze the empty houses thereby decreasing the supply of homes. Lower supply equals higher prices along with bread lines.
I hear they're upping the unemployment by $45. Hey I have an idea. Keep the $45 and get me back to work.
There was a job down in Tacoma, Wa. for meter reader. Something like 6000 people showed up to apply for the job (one opening). And they say we're not in a depression.
Well it's off to a recert class tomorrow. Got to keep you people safe from them tehrrrorists .