Also from Carpe Diem:
So far this year, 11 U.S. banks have failed (FDIC data here), out of 8,451 FDIC-insured banks, matching the 11 bank failures in 2002. The last time more than 11 banks failed was 1994, when 15 banks failed on the tail end of the S&L crisis (see chart above). In total, almost 3,000 banks failed during the 15-year S&L crisis between 1980 and 1994.
So is it a banking crisis? It seems it is more a banking crisis that like the housing crisis is concentrated in a few areas. Or maybe the problems are concentrated at Fannie/Freddie?
Bad assets aren’t nearly as big a problem as back in the S&L crisis either:
I think maybe one of the reasons I’ve been less worried than others about this is that I remember the S&L crisis. There are differences of course; we are a lot deeper in debt now than we were then so a credit crunch has a bigger impact, but the fact is that this is nothing compared to what we went through back then.