What are your thoughts on these big bank closings?

Question

What are your thoughts on these big bank closings?

Answer 1

hmm. well, my older sister works for a bank and i hope she survives the next round of lay offs. i have money in one of the banks that are having trouble but luckily not too much and i'm covered. definitely not a good thing though.

Answer 2

Those of us of the older generation have seen it all before - Sub prime basically means lending money to people who cannot afford to service these loans. Now we are in recession again the banks will have to pay for their greed and folly. The more responsible financial institutions will survive but some will fold or be swallowed up at bargain prices

Answer 3

There will be more of them.  The economy will get worse before it gets better.  All the dirty isn't out yet.

Answer 4

The bank closings are symptoms of a much greater problem.  The United States is clinging to a failed economic model that is based primarily upon the time after World War II when we had virtually no economic competition, because much of Asia and Europe was completely destroyed.  Once these industrial nations began to reestablish their economic infrastructures they simultaneously created health care and educational models that enabled their industries to easily out-perform our antiquated system.  

For example, it is common for a American 22 year-old college graduate to shoulder $100,000 or more in student loans.  How can we possibly expect that person to compete with his or her many European counterparts who have no such debt?  Plus, our young folks have a difficult time affording any health care while their contemporaries in other countries have no such worries and begin careers with 4-6 weeks of vacations compared to our 1 or 2 weeks.

Our once mighty auto manufacturers are also experiencing symptoms of the same problem.  Anheuser Busch as well.  

The two primary sources of American wealth (home ownership and equities) are in chronic decline, so this trend will likely accelerate.

While our GDP (Gross Domestic Product, a measure of national annual economic output) is stagnant, in Russia, China, India and much of Europe the GDP is growing by nearly 10% each year.

My point is, that our economic model does not work in the 21st Century and until we develop the will to change that model. we are destined to endure far worse than mere bank closings.

Your question was thoughtful and I encourage you to look into these issues a bit further.