Losses on U.S. mortgage-backed securities have reached deep into global financial institutions – international bank on a massive decline
Sam Adelton
Oct. 17, 2007

The confidence in US economy and the mortgages that back the boom in housing was too high. The perception was high and certain return. International banks got deep into the trend and now are suffering heavily.

A two hundred year global banking cycle topped early this year. The banking book started after 1907 – the last meltdown. J.P. Morgan, at that time led the crusade against the meltdown. After seven more years, Federal Reserve was created.

In the last one hundred years, the banks have gained immensely. Now is the time for a slow and steady decline after a fantastic blow up in the mortgage and real estate bubble at the end of the cycle.

International banks have started reporting their pains as the global financial meltdown proceeds slowly but steadily.

Wells Fargo, the biggest U.S. bank on the west coast, reported net credit losses of $892 million in the third quarter. The trend is getting worse. Australia's biggest investment bank, Macquarie, fell 1.4 percent to $83.00. Mitsubishi UFJ slid 3.8 percent to 1,012 yen. Kookmin Bank, South Korea's largest, lost 0.6 percent to 74,900 won.

The trend is clear. It is global banking and financial meltdown that is unfolding slowly and steadily.

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