More bank failure and Health of 400 biggest banks

[Guest]

and banks with most troubled loans.

Don’t be surprised to see more bank failures
Closures have been relatively slow, but FDIC is accelerating shutdowns
http://www.msnbc.msn.com/id/32864659...sinessweekcom/

The 400 biggest banks and their troubled loans
http://www.msnbc.msn.com/id/29619236...ss-us_business

Banks with the highest levels of troubled loans
http://www.msnbc.msn.com/id/29619237...ss-us_business

Issachar please give me some feedback on this, thanks.



Dove

[Guest]

Re: More bank failure and Health of 400 biggest banks

bump!!!!

[Guest]

Re: More bank failure and Health of 400 biggest banks

I'm glad my wife listens to me.
I discovered 2 years ago, that our bank had a large amount of debt that was "unsecured." It was $15mil to be exact. We decided to leave that bank, although my wife does have a very small amount still in it, and invest in 2 local banks that have been around since the 1870's, in our state. We've never been disappointed since that move. They are choosy who they loan money to, they turn a profit, and they call us by name when we go there.
No toaster, but hey, I've already got one.

[Issachar]

Re: More bank failure and Health of 400 biggest banks

I am not surprised at this list of bank closings other than, I think it will be a longer list as the next few years pass. The West, as a whole, has accustomed itself to living by debt. Do you remember just months ago when there was a so called "credit freeze" and companies were saying that they couldn't meet or had a hard time meeting, payroll? That is ridiculous! A company makes a widget. They know that there are folks out there in the assembly area producing those widgets. They can do that because someone in purchasing ordered widget like parts. They ordered them because someone in sales did their job and sold them. What is a widget? It's that item that was engineered down there in engineering. Why did they engineer it? Because someone in R&D conceived it because someone in marketing discovered that there are people and companies and governments and schools out there that need or want a widget. How did that client get a satisfactory product? Easy. The quality control dept. has a process control implemented. How can those people do all that work in a clean and safe environment? Janitors. Maintenance men.

Now, unless the company is run by complete ignorance, they KNOW, within pennies, what the cost of goods/services sold, is. That is how they determine what the cost of their widgets should be; i.e. cover costs of producing, which includes payroll, plus profit in order to expand, cover losses, etc. So a percentage of revenue from goods/services sold, should be set aside for each item just as individual households should do. If they "can't", then they need to charge more for their product. If the market goes away by doing that, then it means that they need to shift gears or go out of business. "Sorry folks (workers) but no one wants what we make."

Airlines. Amazing. Like after 60 years of flying jets all around the globe, they don't know what it costs to get one from Detroit to Dallas? From Pierre, SD to Atlanta? Why are they seemingly always in the news for being on the verge or in, bankruptcy? I do not pretend to have a clue about how to set up routes so they can be profitable ... but there are people who get paid well to know these things.

So how does the widget maker and the airline company go on when they don't charge enough for their product or service? Debt. Who loans to them? Banks. People borrow anymore for just about everything. Houses, cars, vacations, books, gasoline, food, toys/gifts, clothes ... The convenience of credit cards (instant loans for more than a bank would give most people if they just walked in and asked for 8K or 20K or whatever crazy numbers they have on those limits these days. They borrow for cars .. people, companies, cities, counties, states and federal borrow almost non-stop. Most states and certainly every aspect of the federal gov't, use deficit spending. They add to their debt load daily. It's like someone buying bigger pants when their old ones no longer fit instead of the alternative of making the old ones fit. Easier to go into debt than to cut spending. The fear is that if the politicians cut spending, they won't get reelected. Why are they not fearful of losing elections because they ran up the debt? Because people don't care about that. Out of sight; out of mind. Cutting spending is in sight; in mind. As a whole, society doesn't realize ... or at least, doesn't think about the fact that the out of sight debt WILL rear it's ugly head. In fact, while the monster is out of sight, it will get bigger and bigger and bigger .... So when it does rear up, it has a voracious appetite and devours MUCH.

The banks are just a part of the whole system of "the world". They too live on debt. They don't have near the money in them that they loan out. Fractional reserve banking is a concept right from the devils mind as is it's first cousin; fiat money. Together they create the ILLUSION of wealth and folks just go glibly along. LA-LA-LA-LA-LA .. IT'S A SUNNY DAY ... ALL IS WELL. IT'S ALL GOOD ... as they cruise down the highway in that new convertible, hair blowing free in the wind ... no thought for the payments.

Then comes a recession; maybe a very deep recession ... jobs are lost, payments are missed ... banks go under.

"All the perplexities, confusion and distress in America
arise not from defects in their Constitution or Confederation,
nor from want of honor or virtue, so much as downright ignorance
of the nature of coin, credit, and circulation." John Adams
(1735-1826) Founding Father, 2nd US President
Source: in a letter to Thomas Jefferson in 1787

Issachar

[Tasarwen]

Re: More bank failure and Health of 400 biggest banks

Airlines. Amazing. Like after 60 years of flying jets all around the globe, they don't know what it costs to get one from Detroit to Dallas? From Pierre, SD to Atlanta? Why are they seemingly always in the news for being on the verge or in, bankruptcy? I do not pretend to have a clue about how to set up routes so they can be profitable ... but there are people who get paid well to know these things.

As the daughter of an airline captain and the sister of two airline captain brothers, I can tell you that this is a complex issue. The price of av-gas fluctuates up and down, the labor unions are always asking for more, and the number of flying public changes daily. Airlines are always fine tuning by changing routes, destinations, and types of aircraft. Also, some of these companies are huge and many times the head loses track of the tail. Well....all except Southwest. LOL!

[Issachar]

Re: More bank failure and Health of 400 biggest banks

It is very complex and perhaps I should not have used that industry as an example to make the actual point I was attempting to make. But I know that av fuel fluctuates a lot. Seems they could charge passengers according to a certain fuel price and when it actually cheaper, they make more profit for when it costs above the price they set. e.g. They assume $2 per gallon and base ticket prices on that. They end up getting it for $1.60. They load up the plane with thousands of gallons of fuel; saving .40 on every one of them. Don't spend it. Save it. Next time it might actually come in at $2.20. That's fine though because they saved more than that the last time. Anyway ... the details of running that business weren't my point ... I'm just trying to say that if we have X amount of income ... whether individuals, corporations or cities and states, etc., then X amount is what we have for spending. If we want to spend more than that, it has to be through debt. Debt is killing everyone in general.

Issachar