Tuesday, January 06, 2009

The Big Apple Goin’ Bust!

The recent article titled "What's in Store for Regional Banks" by fellow blogger and expert mortgage analyst Ira Artman is a superb example of macroeconomic and credit modeling and forecasting… I would encourage all to give it a good read.

Ira demonstrates very clearly that community banks in the New York and New Jersey metro area are likely facing a prolonged period of rising non-performing loan ratios regardless of the quality (or touted quality) of the bank’s “prime” loan portfolio or its management

What’s driving this "prime" mortgage portfolio stress is simple… significant unemployment and falling home prices.