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Banking Crisis: No End in Sight

Posted by billspaced | 5:01 AM | , , , , , | 0 comments »

From BloggingStocks:
The IMF has predicted that total write-downs driven by the mortgage crisis will hit over $1 trillion. Only about half of that has hit the markets so far.
Happy Days will be here againWell, there is an end in sight, but it surely will mean the loss of trillions in equity for investors in the affected banks. I'll reiterate my call for perseverance, as the survivors will emerge from this wiser, richer, and much better-positioned to not only weather a future storm but also control their markets in a much more powerful way (read: Oligopoly-power).

The cooperation that is occurring amongst the bigger banks will also contribute to collusive powers that only make them stronger and you'll see these companies move in lock-step for a time. Eventually, there will be innovations in banking and some will break from the pack, but that will take at least 5 years. Probably more like 10.

But rest-assured, your deposits at any of these banks are safe. The government cannot -- and will not -- allow the FDIC and other insurers to fail.


So, please, hunker down. Hope for the best. Plan for the worst. Odds are, you'll end up somewhere in between in the short- to intermediate-term, but you'll get to the best sooner than the rest. And that's not a bad place to be.

Money isn't everything. Enjoy life. Spend time with your family.

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