Last year there were, I think, 25 bank failures. To date this year, there have been 27. Two today. Heritage Bank in Michigan and American Southern in Kennesaw, GA. The pace is apparently picking up.
With the news about GM shedding Pontiac, numerous plant closings, the economy remains troubled. There has been here and there a piece of encouraging news, but I do not think the turn has been made yet.
We are coming into a new economy. More centralized? Less American? More government? Less debt? More socialized? Less entrepreneurial?
A congressman has recently asked if capitalism is the same as survival of the fittest. I wonder what his view of capitalism is. I wonder what he thinks should be the fundament economic principle.
When we do make the turn, what will the road be like and where will it go?
Just wait for the results of the bank stress tests! Unfortunately, it seems we are on a path to more debt, socialization, and nationalization. There will be more centralization. There will always be entrepreneurs but their ideas may be restricted by availability of capital. In my opinion, it is going to be a bumpy road. We will see some stabilization later this year and next but beware it is not the bottom. The next bull market should start around 2023.
We are seeing consolidation and nationalization and I abhor it. The businesses and individuals that took the profits from toxic loans should be prosecuted.
Let em fail, they're all crooks anyway. Let the whole system fail, that way we can all start over with a clean slate. Redistribution of wealth, yaaaa babyyyy!!!
Joel,
The stress test standards are out. We will see who the government will choose to save. I love your optimism about the coming bull market.
Vickie,
There seems no way out from consolidation and nationalization. Mr Congressman seemed with his question seemed to have decided that capitalism is the problem.
Gregg,
If we start over with a crash, not sure the slate will be a clean one.
Richard
Sad to see this happening all over -- thanks for the report.
I think bailouts are foolish, we need to let free enterprise do its job and because of government intervention we are in the situation we are in. Despite many warnings of what they were doing the government pushed large companies to do things that ended up bankrupting them and when the warning signs started they did nothing.
Government needs to stay out of business, nothing has ever been run by better by a government!