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n. Illinois | there is a massive difference between the 1980's and now.
Back in the 1980's the borrower had the interest rate risk. Farm credit did not offer any fixed rates, Banks wouldn't go beyond 5 years on a rate (still don't) Fannie and Freddie were not the players in the home mortgage market like they are today. Back then the local S&L made the home loans and look at what happened to that industry. Its gone.
Already 3 failed banks in just two months.
Same story in all three too. Low Fixed rate assets funded by short term borrowings.
They all bet on the Fed never raising interest rates. | |
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I think we are just seeing the beginning.
