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Predicting the Next Banking Crisis Is a Fool’s Game. Not Learning From the Last One: Equally Foolish

Jeff For Banks

The dot-com bubble recession began in March 2001 and lasted only 8 months. percent of all jobs in 2001 to 11.3 By comparison, non-high-tech industries lost 689,000 jobs between 2001 and 2002 but recovered the lost jobs by 2004. Most of the more than 500 financial institutions that failed were community banks.

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Guest Post: FInancial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

We have one year to go to match the longest expansion since World War II, which was the prosperous period engineered by Maestro Greenspan from March, 1991 to March, 2001. This is because the economy has been gaining momentum, however modest, from the tax cuts and deregulation. The economy has grown 2.2%

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Guest Post: Financial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

Economic growth picked up strongly in the second quarter, with a reading of +4.2%, as momentum from the tax cuts and deregulation pushed spending and investment higher. The longest expansion on record was from March, 1991 to March, 2001, with growth of 3.6%, engineered by Maestro Greenspan. Economy The economy is on a roll!

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Guest Post: Financial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

History has shown that inverted yield curves precede recessions by 18 to 24 months on average, as we saw in 1990, 2001, and 2005. Indeed, banks generally pull back on lending if longer-term loan rates are less than their cost of funds, which are generally based on shorter-term rates. 27%; the Fed recently said that a cushion of.40%

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Consumer Lending: Should Banks Do It?

Jeff For Banks

Consumer loans for those banks that utilize my firm’s outsourced profitability reporting service lost (0.26%) as a percent of the average consumer loan portfolio in the fourth quarter. Ever since we formed our company in 2001, this has been the case. Most community financial institution strategies has some sort of “community” focus.

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