86% of bbt gross charge-offs for the 1st qtr. 08 were loans with no collateral (credit cards, student loans, personal loans) or loans with weak collateral (home equity line, jr. lien on property, car loan) but only made up 14% of non-performing loans.
Consequently, most of the principal of these loans had to be written off .
The balance or 14% of bbt gross charge-offs for the 1st qtr. 08 were loans secured by real estate (first lien with an average ltv guesstimated at 70%) and in many cases were personally guarantees. These loans made up about 86% of non-performing loans.
Imo, most of the principal of those loans which will have to be foreclosed will be recovered and therefore, only 20% or less of these loans will have to be written off. Some of these loans will return to accruing status once the economy picks up.
Bank analysts apparently have a difficult time making this type of differentiation. Or they believe that the vast majority of the real estate collateralizing bbt loans is greatly inflated like california, arizona and arizona property values.
What makes Obama think he can get a National Health Care Plan passed if he is elected, especially one that is as good as the one congress passed for themselves. (The hogs feeding at the trough they fill.)Congress was supposed to pass a NHC plan in 1949 when a family plan only cost $50 or less a month and they decided that the country could not afford it. Now a plan that Obama is talking about will cost in excess of $2,000/month and he wants to include illegals, ain't no way congress will pass it. They will simply improve their own plan this year and pigeon hole the NHCP for another year or two. As you said politicians use words to get elected.
As a 'Die Hard' democrat for the past 50 years, I see we have had a democrat congress for the past 2 years and things have just gotten worse. They have done nothing to correct all the things they said was wrong with the gov't. Now we have a new young democrat candidate for the WH and it looks like he has a great chance to be elected, but he seems to be endorsing all the BAD moves of the past 2 years that congress has passed. I don't think just hollering 'CHANGE' is going to fix things.