Now See The REAL State Of The US Banking Industry


The banks are repaying TARP. Great.

But if you think the banking and credit system has returned to health, you need to think again.

Nathan’s Economic Edge has done a fantastic job of gathering charts mostly from the St. Louis Fed to demonstrate the real state of the US banking system

Can’t understand why Chase won’t give you a loan for that new 2010 Camaro?

Click here to see the real state of the banking system >

When your non-performing loans exceed allowances for the losses, you're in trouble. The number of banks in good health has never been lower.

Non-performing commercial loans reach levels not seen since the mid-1990's.

Large banks have had massive charge-offs. Levels haven't been this high since 1990.

Banks are getting the worst return on assets (ROA) since the late '80s.

And return on equity (ROE)? Hah! The current level is right above zero.

Plenty of cash was floating around in the money supply up until this year. Now banks are hoarding it.

Wonder why it's so hard to get a loan? Never before has the credit for commercial banks been so low. Credit has contracted by nearly 600 billion dollars over only a few years.

The amount of commercial paper available for short-term financing has also collapsed.

Total Consumer Credit outstanding is down more than $120 billion year-over-year.

Revolving consumer credit (credit cards) plunged to record low levels in 2009.

Not since the 1992-era has total non-revolving credit seen levels this low.

This is why your local bank won't lend you money for a car or house.

And funds for retail investors have seen a dip as well, though it could recover over the next 5-10 years.

Institutional Money Funds have increased year-over-year up until recently.

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