"Here's a safe bet for uncertain times: A lot of banks won't survive the next year of upheaval despite the U.S. government's $700 billion plan to restore order to the financial industry."
Bank on this: Bank failures will rise in next year
Monday, October 6, 2008
Bank on this: bank failures will rise in next year
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I read an article about this today in the newspaper. And it is scary....and I am sure there are many tough times for America in the future. I am sure of it! I know that even though I can't control what happens with the banks or my money, I can control my current spending, debt load, and I can plan for the future! I already have peace of mind with the food storage we already have and no unnecessary debt! It is a great feeling. It's never to late to start planning for those tough times ahead!
True! Food storage!! We've got some but need to get more.
Not just food storage, but debt load. I can't tell you how MANY people I know here in the Treasure Valley that have been getting into trouble with this whole market slump. They got over their heads with their house and have lots of debt. I am so glad we are not in that position. It pays to live within your means!
I definitely agree with being prepared for emergencies and living within your means.
However, one of the reasons I shared this article was because it wasn't just about doom and gloom.
It was also trying to point out how it's not "the end of the world"
Near the end of the article it states:
"James Barth, who was chief economist of the regulatory agency that oversaw the S&L industry in the 1980s, doubts things will get as bad as they did then.
"It's scary right now, but it's not as scary as a lot of people are making it out to be," said Barth, now a senior fellow at the Milken Institute, a think tank.
The tumult is creating expansion opportunities for healthy banks. Industry heavyweights like JP Morgan, Citigroup and Bank of America Corp. have already rolled the dice on major acquisitions of financially battered institutions in hopes of becoming more powerful than ever.
Smaller players like Clifton Savings Bank in New Jersey are bragging about their relatively clean balance sheets to lure depositors away from rivals that are wrestling with huge loan losses. The bank, with about $900 million in total assets, says just one of its 2,300 home loans is in foreclosure.
"There is going to be a flight to quality," predicted John Celentano Jr., Clifton Savings' chief executive. "People are going to start putting their money in places that were being run the way things are supposed to be run: the old-fashioned way.""
Not to be Mr. Doom and Gloom but according to this article over 2 Trillion Dollars that's $2,000,000,000,000 has been lost from Pension plans, 401k's and IRA's in the last 15 months.
I hope things will turn around soon. They should with the bailout passed. Yeah Right!
I found it interesting that that much has been lost and that the market continues to collapse.
Here is the article.
Pension Plans Lost $2 Trillion in Last 15 Months
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