And the majority of Americans are now beginning to realize that the dire predictions of their local banks failing is just not materializing. For all the complaining about the government stepping in to help the banks, the reality is that the Fed's rescue plans are working. Treasury and Fed leaders seem to have structured the specific programs just about right.
In fact, I've recently seen bank billboards and signage like, "We are rock solid. Come inside and let us tell you why." or "We specialize in small business loans. Let us earn your trust." or "There is no credit crisis here." (Please send others to me as you see them.)
Bank failures last year and today are much lower than during other banking problems in recent memory. (Like the Savings and Loan Crisis)
Source: News N Economics (click to enlarge)Additionally, according to the FDIC, no banks failed last week and according to Fed data, actual lending continues at record high.
Source: Calafia Beach Pundit (click to enlarge)It is no wonder that consumer confidence is up and retail spending continues to improve.
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Yes in fact, I run an ad agency and one of our clients is a credit union. We had to develop a campaign for them to let customers know they are in great shape, are financially solid and ready to lend. A pox on the media for spreading fear in this manner.
ReplyDeleteFear is like a virus. And it spreads like wildfire. The parrots in the media regurgitate whatever the alarmists are saying over and over and over again like a borken record. However, the situation is serious. I think the government has done enough at this point. Now it is time to let free markets clean up the mess. There are plenty of banks that would be willing to take a small to moderate risk in buying up some of the toxic assets through the public-private program set up. Multiply that by thousands of smaller banks doing it, and you might have something. Unfortunately, the government is in permanent crisis mode because the media keeps drilling everybody with 'the sky is falling'. That is why websites like this are so important. I tell everyone I know about this site and postiveeconomicnews.com. Now, we just have to worry about inflation when things start to recover. That is my biggest worry.
ReplyDelete@Madsen,
ReplyDeleteI'd be interested in hearing any of the slogans you came up with for the client. The one that I've seen most around here is something like "Come bank with us. We're rock solid."
@Anonymous,
I agree that it will be a challenge to keep inflation in check once things are firmly on a growth path. I do have confidence that this team can do it though... they will have more time to unwind what they have done than the time that they had to rescue the crisis.
GNE
Just this morning there is a piece on CNBC with George Soros flapping his gums saying banks are "Basically Insolvent"
ReplyDeleteFrom CNBC:
"The U.S. economy is in for "a lasting slowdown" and won't recover this year, while "the banking system as a whole is basically insolvent," billionaire investor George Soros said."
Fear and uncertainty are great for guys like Soros. There is money to be made (and LOTS of it).
Tuesday Ramblings.
Yes, George, Flap on.
ReplyDeleteGNE
We also have the NYU economist Noriel Roubini making tons of money from his consulting and speaking business, telling everyone else they're going to go broke!
ReplyDelete