This report has caused quite a stir even though almost none of the reporters writing about it have read it. But that doesn't stop them.
Bank loans are defaulting. The prediction is that they will default even more in the future. The cry is that not enough bailout money was given to the banking industry to forestall disaster. Worse than the Great Depression! Now run around and scream like a crazy person.
The problem is being approached from too narrow a perspective. Banks will not have defaulted loans if people have jobs. The focus needs to be on getting jobs for people and loans for small businesses. That is the foundation that our banks stand on.
If people are paying their mortgages then they will have an income to do it with. There will be no need for panic or for cries of Great Depression II.
Unlike 1929, the U.S. Government is taking a proactive role in addressing problems with our economy. The hyped-up fear is misplaced.