As I Suspected: Smaller Bank Failures Coming....

From today's Sovereign Society letter:

Thursday, April 24, 2008 - Vol. 10, No. 98
How Mervyn the Magician and Helicopter Ben are Destroying Your Dollar
Today's comment is by John Pugsley, best-selling author and Chairman of The Sovereign Society since its inception.

Dear A-Letter Reader,

As you know, the biggest banks worldwide have owned up to enormous losses, now more than US$300 billion and still counting, over the last year. That includes the failure and bailout of the fourth largest U.S. investment bank, Bear Sterns.

But against this background of staggering losses by the big banks, only five small banks have failed in the last 12 months. These are...

1. Metropolitan Savings in Pittsburgh
2. Douglass National Bank in Kansas City, Missouri
3. Miami Valley Bank in Lakeview, Ohio
4. NetBank in Alpharetta, Georgia
5. Hume Bank in Hume, Missouri

It Only SEEMS like the Banking System is Relatively Sound

In truth, that number is deceptively low compared to crises of the past. In fact, the list of possible problem banks remains at historically low levels. There are only 76 institutions on the FDIC's "watch list." In 1990, as the S&L crisis unfolded, there were close to 1,500 banks on the list, and 800 failed between 1990 and 1992.

However, while it might seem that the banking system is sound, federal banking regulators are gearing up for potential problems. The FDIC announced that it plans to hire at least 140 new employees to deal with a possible increase in bank failures over the next year.

By tejasmarcos on Apr 25, 08:09 in Off Topic.

MaFe says on Apr 25, 09:18:

It is very scary...so many banks are being bought out....

"No comment" is a splendid expression. I am using it again and again." -Winston Churchill

miamimike says on Apr 25, 13:22:

Go back to the 80s and the banking crisis then. Anyone remember Neil Bush(dubya's brother) and the Silverrado Saving and Loan Crisis? Neil Bush was the Poster Boy of this Banking Crisis,,,

"There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can't get fooled again." —President George W. Bush,

Tinto (Moderator) says on Apr 25, 14:28:

I think Charlie Keating was the poster boy.

aztec says on Apr 25, 14:40:

miamimike., My friend you really do have a thing about the Bush's. Hold on it is not much longer.

While I voted for him twice I must admit he infuriates me at times. Given the same choice again I would vote the same way!

MaFe says on Apr 25, 16:03:

sorry Miami, I was running around in diapers at that time...but I will look it up....I am very bad with business...

"No comment" is a splendid expression. I am using it again and again." -Winston Churchill

miamimike says on Apr 25, 17:20:

Tinto-I believe he, Neil, shared the Dubious Honor with Keating,,,Neil also is a Psuedo Moonie!

Aztec-The Bush Boys of Summer have this Sense of entitlement is what I detest about them. If they had to achieve the Governorships of Texas, Florida or the Presidency without the help of the Bush Family Name, do you honestly think any of them could have been elected?? I have Voted for Republicans half of the time I have voted for Presidents from( Nixon to Reagan) yet never for a Bush. In '92, being the Independent I am, Ross Perot took my Vote. Under "any" circumstance, I could NOT vote for a Bush. And it has nothing to do with them being Republican,,, The Next President will have a real mess to clean up with Iraq, a Broken Military that is severely weakened,unable to respond to any other crisises needing ground troops, a very damaged world Image(usa), a National Deficit the likes of which have we haven't seen in the USA. And to think, John McCain says we could be there for another 100 years so we see his plan for leaving Iraq and Change in general,,,