Below is a chart showing the delinquency rates and charge off rates of banks in the U.S. The data is highly skewed by the largest Wall Street banks. A critical thinking person might look at this chart and ask why the charge-off rate was consistently between 1% and 2% lower than the delinquency rate from 1996 until 2007, but since the financial crisis and fake recovery, the charge-off rates are 4% to 4.5% below the delinquency rates. A skeptical person might conclude that the Wall Street banks are committing accounting fraud. If they had followed the ELEVEN year prior precedent, all of the billions in profits they have reported over the last three years would evaporate into thin air.
Wall Street is playing the extend and pretend game, and this chart reveals their fraud. They pretend that delinquent loans will be repaid and therefore never write them off. It is actually far worse than this chart reveals because they have restructured hundreds of billions in loans with developers to make it appear they are not delinquent. And so it goes.