Banks Still Collapsing-America Close To Destructive Tipping Point

Discussion in 'Economy' started by Neubarth, Sep 28, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    Banks Still Collapsing-America Close To Destructive Tipping Point


    The largest number of bank failures in nearly 20 years has eliminated jobs, accelerated a drought in lending and left the industry's survivors with more power to squeeze customers.

    Some 279 banks have collapsed since Sept. 25, 2008, when Washington Mutual Inc. became the biggest bank failure on record. That dwarfed the 1984 demise of Continental Illinois, which had only one-seventh of WaMu's assets. The failures of the past two years shattered the pace of the prior six-year period, when only three dozen banks died.

    Two more banks went down last Friday, and failures are expected to "persist for some time," according to a report issued Tuesday by Standard & Poor's. In the second quarter of this year, the Federal Deposit Insurance Corp. increased its number of problem banks by 6% to 829.

    Banks Keep Failing, No End in Sight - WSJ.com
     
  2. william the wie
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    william the wie Gold Member

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    This is not the problem this is a symptom. The problem is that the growthrate in the troubled institutions list keeps growing. Jerkily yes, with trend reversals yes but the trendline is for an ever sicker financial sector.
     
  3. loosecannon
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    loosecannon Senior Member

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    "Some 279 banks have collapsed since Sept. 25, 2008"

    between '30 and '33 it was 9000 bank failures

    in a sense we had too much banking capacity in 2007, or too many banks. this is how capitalism works
     
  4. Toro
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    Toro Diamond Member

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    There were 1600 bank failures during the S&L crisis. So this is peanuts thus far.
     
  5. loosecannon
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    loosecannon Senior Member

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    i think it is healthy, thin out the dead wood
     
  6. william the wie
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    william the wie Gold Member

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    A lot of the drama has been avoided by shotgun marriages by the FDIC and very accommodating Fed policy. The people in DC are getting good at this stuff demonstrating that practice does make perfect.
     

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