Chris Whelan: Foreclosure Fraud Crisis could Dwarf 2008 Meltdown

At a  recent conference, Whalen said the foreclosure crisis would make 2008 look like a cakewalk (via Prag Cap):

“The U.S. banking industry is entering a new period of crisis where operating costs are rising dramatically due to foreclosures and defaults. We are less than ¼ of the way through the foreclosure process.”

Whalen says subprime losses never really showed up on balance sheets. But a coming wave of foreclosures will make them a reality. At a time when banks are already stressed, these rising operational costs will cause bankruptcy.

Even without foreclosure-gate banks were screwed. As the government stalls the clear out of toxic assets, bank liabilities will rise even more.  See the show at Business Insider.….