http://money.cnn.com/2009/02/20/news/companies/bank_failures/index.htm?postversion=2009022022
For six consecutive weeks, regulators have been seizing control of banks after the closure of markets on a Monday. In 2009 it self, 14 banks have already failed, adding to the 25 which failed in 2008.
Financial analysts predict that about 100 banks will close before the year-end at the current rate. On the other hand, some advocated recommend the closure of non-performing banks so that the economy can be on its way to recovery after the worst is over.
Followers of economics know that cyclical booms and slumps have been a part of the world economy for as long as the market has been studied. We wonder if the almost perfect information communication system that we have today was the culprit in spreading panic and blowing out of proportion the natural occurrences in the business cycles.
Consider this: 534 banks closed in 1989, and 1900 in the period between 1987 and 1991. Yet, the world economy recovered and actually went into a boom a few years later! We recommend loads of patience and grit to bear it out. The tide will turn, folks. Just wait and watch.
