Sunday, July 27, 2008

2 New Banks Down

The first National Bank of Nevada and the first heritage bank of North America both have failed over the weekend, with the FDIC doing as it normally does and closing the banks down on a Friday so that it can go about to taking over.

Info Here
And Here respectively

While of course this comes no where close the number of banks that failed in the 1980's (whose number totaled around 3000). It is still the largest number of bank closings in quite a while, quickly coming to dwarf the several failures that occurred in early 2002. What will make this worse than 2002 is that for the most part, besides the political bickering (which the media has been focusing on for the last 7 months), tit has been a slow news year. And they love stories that may or may not incite panic. So undoubtedly this will be making headlines if something else doesn't come up.

What happens than is that more people will be looking at their banks and evaluating them. Add this to the fact that several large banks are expected to fail and simply haven't yet.

list here

And you get a nasty economic future. Of course the best thing to do right now is have a little faith in the banking system, because if people begin to panic, than that is what causes the chain reaction, much like the one seen in the 1980's. I would also like to point out that it was a republican president in charge both times =D. I'm not saying much... I'm just saying blame Regan and his now rotting corpse for the evils of the world

Anyway fact of the matter is that this by no means indicates a large scale failure of the United States economic system. It simply means that the economy will be going through some rather rough times in the near future. In my local area they are putting all hope into a VW plant that is going up in the near future. I of course would be leaving as soon as it gets approved. But really what it tells me is that our primary money source (Industrial Manufacturing) is changing.

Meh thoughts aside, I'm hungry and need of a burger because I'm a fat, lazy, blogging, and happy American. So suck a corn dog I guess..


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