FDIC Report Revisited
The FDIC flip-flop was revisited by this mortgage blog, with a few new facts. "The Corporation which insures and to an extent regulates the nations' banks has good reason to hope that it won't soon encounter the kind of real estate downturn that most recently occurred in 1990-1993."
"At that time the Corporation was forced to close some 300 banks, largely in the Northeast and California. This was merely the frosting on the massive savings and loan mess which forced closure of over 750 S&Ls throughout the Midwest and Southwest."
"The FDIC still had its hands full. The failure of the banks was largely due to their unbridled enthusiasm for real estate and FDIC inherited billions in real estate secured loans and bank owned (foreclosed) properties from the banks it closed. Clearing it all up took almost a decade and nearly bankrupted the bank insurance fund."
Check out the first comment, "I dont know much about this. I live in California. What is a housing bubble? What is a real estate bubble? Is this housing bubble going to hurt my home price in California? What can I do to protect myself? Thanks for any advice."