1. Do we need to say more about the housing market? It is in a shambles and not looking like it will be picking up anytime soon.

2.Bank’s profitability is in serious question. There is so much that can be made at the current yield curve.

3. Standards for both Commercial and Industrial (as well as residential) have dropped of late. Of course we keep hearing that no on is able to gt a loan, but it appears that it is more of a lack of demand than a lack of the bank’s desire to lend…. Even so, standards are dropping and that is not a good sign….

Bonus!

The potential for Fannie Mae and Freddie Mac to allow for a readjustment to mortgage interest payments for those who qualify could put an additional squeeze on banks. The lower rates will be heard as unfair from those that did not get in on the action and those mortgage holders that are not with a loan through Fannie or Freddie. Banks will need to compete and that will be a disaster.