The FDIC reported that [bank and thrift earnings set a record this quarter [FDIC]]((, above the prior record set in the first quarter. Other items of interest are:

  • Residential mortgage loan growth increased 3.6% over last quarter. (I’d consider this a solid increase.)

  • Growth in real estate construction was 7.2% and is accelerating. (This is reflective of the potential for an over supply of housing.)

  • Home equity loan growth increased by 0.8%, the smallest quarterly increase in 4 years. (This could be a clue to a weakening economy as homeowners cooled off their use of home equity accounts, which is largely credited with keeping the economy going.


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