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Sunday, July 19, 2009

Not All Banks Are Alike

A few more banks have gone belly up.

The article points out that the cycle of unemployment, lower housing prices, and debt default is the cause. Also they are reporting that losses from residential home mortgages might be leveling off, but that losses from commercial loans is increasing.

We can't overstate the fact that there is a massive business shake out in progress.

Yahoo: Regulators shut banks in Calif., Ga. and SD
Regulators on Friday shut two banks in California and two smaller banks in Georgia and South Dakota, boosting to 57 the number of federally insured banks to fail this year.

The 57 bank failures nationwide this year compare with 25 last year and three in 2007.

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