The banks are just fine. Only a small number of loans have gone bad. Ah yes, it’s a beautiful day. I suppose we have full employment also.
It’s great to have diverse viewpoints, but NPR should try to make sure that the economic analysts it features have some grasp of reality. Richard Bove, who was featured on a segment on Morning Edition, doesn’t fit the bill. Banks are seeing record default rates on all forms of loans and will continue to do so for the next two years. It is absurd to contend that the banks are just fine as Mr. Bove contends. It is irresponsible to present this as a serious position.
–Dean Baker
