Housing Crash A ’Very Real’ Possibility as Rates Hit 23-Year High. US Banks Squeezed to Extinction. Goldman’s Embattled CEO David Solomon Deserves Credit for Leadership, says Dick Bove. China Tumbles

With markets about to parse the forthcoming speech this week of US Fed Chairman, JEROME POWELL at Jackson Hole, Wyoming, all eyes were suddenly on mortgages rates, which have hit a 23-year high on 30-year fixed loans. Home affordability in America is becoming more expensive, demand is far outpacing supply, and the funding mechanisms for home mortgages are creaking. "We're seeing a breakdown in the housing financing system, " says DICK BOVE, chief financial strategist at ODEON CAPITAL GROUP. "I think the possibility of a housing crash is very real." MAT VAN ALSTYNE, ODEON co-founder and managing partner, says in the event of a housing crash, it is conceivable the Fed would intervene to control the financial debacle with a series of familiar measures to stimulate liquidity.

Banks continued to be squeezed with S&P following Moody's and Fitch in downgrading banks. The CONVERSATION examines the growing risk now facing the US bank system as regulators step up their capital requirements for lenders. On the positive side, after a sustained slowdown, investment banking is showing signs of renewal as deal making and stock offerings slowly return. Meanwhile, BOVE lays out his case for why Goldman Sachs CEO, DAVID SOLOMON, has positively contributed to the financial strength and future of the fabled investment bank. Elsewhere, we look at China and thedisturbing signs of economic decline. Joining the CONVERSATION is JOHN AIDAN BYRNE.

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