The Coming Bank Crisis

Coming Soon: Banking Crisis of Historic Proportions

With everyone (well, almost everyone – I am one of the lonely skeptics) convinced that we have stepped back from the “edge of the abyss”, the title of this article may be viewed as laughable. When you connect the dots, as I will in this article, you will at least stop laughing, and, maybe, realize that we still have a big problem.

We have a confluence of five factors that have the potential to create damage to banking not seen in 80 years, and that includes the Great Depression. We’ll hit these factors one at a time.

First Factor: Banks Are Not Doing Enough Business
Second Factor: Banks Are Failing at a Rate Not Anticipated Two Months Ago
Third Factor: Defaults Are Going to Increase for Several More Quarters
Fourth Factor: The FDIC Is in Trouble
Fifth Factor: We May Be Going to Historic Lows in Bank Credit

Full Article

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