Monday, October 26, 2009
Bank Charge Off Rate Is Worse Than During the Great Depression
In May, analyst Mike Mayo predicted that the bank loan loss rate would be higher than during the Great Depression.
In a new report, Moody's has just confirmed (as summarized by Zero Hedge):The most recent rate of bank charge offs, which hit $45 billion in the past quarter, and have now reached a total of $116 billion, is at 3.4%, which is substantially higher than the 2.25% hit in 1932, before peaking at at 3.4% rate by 1934.
And see this.
Here's a chart summarizing the findings:
(click here for full chart).
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