The Second Wave of Bank Failures

Will there be a second wave of bank failures?

Yes. At least according to a couple of financial experts on 60 minutes tonight.

The second wave is just now starting and will last through at least 2010, possibly 2011 and will be caused failures in adjustable rate mortgages.

These are the mortgages where banks would give low interest rates, sometimes as low as 2 to 3% and then adjust at a set point of time.

Wall Street models predict these mortgages will fail in the high 70% range and have a more negative effect on our economy then the current sub-prime mortgage crisis’s.