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I was toying with the idea of buying a 30-Month CD at a local bank. I've used them in the past. They have good rates. I looked them up on Bankrate.com but they are now rated 1 star out of 5. I've decided to pass.
While I was there, I decided to see just how common 1 star banks had become.
5 Star Banks: 8 Pages
4+ Star Banks: 39 Pages
3+ Star Banks: 60 Pages
2+ Star Banks: 72 Pages
1+ Star Banks: 81 Pages
Doing some crude reverse engineering on the results yields:
5 Star Banks: 8 Pages
4 Star Banks: 31 Pages
3 Star Banks: 21 Pages
2 Star Banks: 12 Pages
1 Star Banks: 9 Pages
It would seem that 1 bank in 9 is a 1 star bank (9 pages out of 81).
Ratings Structure for Banks, Credit Unions, and Thrifts
5 Stars: Superior
4 Stars: Sound
3 Stars: Performing
2 Stars: Below peer group
1 Star: Lowest rated
If it takes 4 stars to be sound, then it would appear that more than 50% of banks are not sound (42 pages out of 81).
That's not really much of a surprise of course. Brace for the sarcasm. Here it comes.
May 7, 2009
Lessons of the Financial Crisis for Banking Supervision
Among other things, our analysis reaffirms that capital adequacy, effective liquidity planning, and strong risk management are essential for safe and sound banking; the crisis revealed serious deficiencies on the part of some financial institutions in one or more of the areas.
Some?
April 14, 2010
Ben Bernanke: Time to shift from stimulus to federal deficit
“Achieving the appropriate balance between necessary prudence and the need to continue making sound loans to creditworthy borrowers is in the interest of banks, borrowers, and the economy as a whole,” said Bernanke.
Continue?
ICE: Mortgage Delinquency Rate Increased Year-over-year in October
-
From ICE: ICE First Look at Mortgage Performance: Serious delinquencies hit
17-month high while foreclosure activity remains historically muted
• At 3.45% ...
2 hours ago
8 comments:
I am loving this post.
GYSC,
I just try to give the readers what they want. Sarcasm!
Poll Results: What Interests You?
Charts, predictions of doom, and sarcasm lead the list, eh? That's a relief! I'll just keep doing what I have been doing then for the most part. ;)
We can also look back in hindsight and see that the readers didn't just fall off a turnip truck.
From 2007...
Poll Results: The Year of the Financial Reckoning?
So, without further adieu, the favorite by a wide margin is 2008, The Year of the Rat. He's looking pretty sharp. I can see why he might be favored.
Poll Results: How Should We Position Ourselves?
Let it not be said that I didn't at least try to put a happy face on the results.
Stagflation and recession/disinflation were the winners by a wide margin, and were both correct answers in a way.
Good times. Good times.
I'm not going to bash our banking system. That would be un-patriotic.
But I will say that our safe and sound banking system only needed $13 trillion in Government/Fed guarantees to keep it from collapsing. I mean, compared to our $100 trillion in unfunded liabilities (net present value basis) that's a pittance!
mab,
Ah yes, a pittance.
The Prince and the PM - Blackadder - BBC
He's not going to win is he?
No sir. Because firstly, we shall will fight this campaign on issues and not on personalities. Secondly, we shall be the only fresh thing on the menu. And thirdly of course, we'll cheat.
Good news! Property prices in China grew at the fastest pace in nearly five years!
http://online.wsj.com/article/SB10001424052702303695604575183143413892542.html
This is awesome news. A billion Chinese can simply buy property and become rich! I'm hoping that once all the Chinese become wealthy, they won't feel the need to compete for our jobs.
The asset bubble eCONomy is truly glorious. And it's also perfect fit for a job loss recovery.
mab,
Good news! Property prices in China grew at the fastest pace in nearly five years!
That's fantastic! If we can get the typical Chinese condominium to be worth more than one Detroit Silverdome (post-crash) then just imagine how much weatlh they will be able to extract (pre-crash)!
Stag,
We might actually have to jettsion Detroit. I think the entire city now has a negative value.
If we do decide to dump Detroit, I'd like to keep the Book Cadillac. You know, just for Illusion of Propserity posterity.
mab,
I've been to Detroit once. I saw it from the air as we landed. I saw it from the ground in the airport. I saw it from the air on the connecting flight.
One word comes to mind... gray.
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