MikeLigalig.com

by Louise Story
Monday, July 14, 2008

The New York Times


As home prices continue to decline and loan defaults mount, federal regulators are bracing for dozens of American banks to fail over the next year.

But after a large mortgage lender in California collapsed late Friday, Wall Street analysts began posing two crucial questions: Just how many banks might falter? And, more urgently, which one could be next?

The nation’s banks are in far less danger than they were in the late 1980s and early 1990s, when more than 1,000 federally insured institutions went under during the savings-and-loan crisis. The debacle, the greatest collapse of American financial institutions since the Depression, prompted a government bailout that cost taxpayers about $125 billion.

But the troubles are growing so rapidly at some small and midsize banks that as many as 150 out of the 7,500 banks nationwide could fail over the next 12 to 18 months, analysts say. Other lenders are likely to shut branches or seek mergers.

“Everybody is drawing up lists, trying to figure out who the next bank is, No. 1, and No. 2, how many of them are there,” said Richard X. Bove, the banking analyst with Ladenburg Thalmann, who released a list of troubled banks over the weekend. “And No. 3, from the standpoint of Washington, how badly is it going to affect the economy?”

and more...http://finance.yahoo.com/banking-budgeting/article/105391/Analysts-Say-More-Banks-Will-Fail


Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=13853.0

korek!

Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=13853.0

I totally agree with this.  Kapoy na a big chunk of our monthly income goes to the mortgage.  Sa Pajag pohon, buhi ra jud ta.  We will grow our own food, organic food.  Simple and frugal living.

Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=13853.0

Mao na Olintana kada merging naa jud mga employees nga ma talsik! pastilan, kadaghan ba chain reaction ani oi!

sakto jud ka Bene san nga ang pajag di jud na ma foreclose...

Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=13853.0

I have something to share about the world crisis.

My Own Analysis:

Factors affecting high oil prices:
- War in Iraq is not the reason.
- Recesion in the US that made all business to slow down. Thus production business that required fuel consumption also slows down. Due to this, OPEC has to increase it's prices in order to achieve thier target in value($) and not in volume. I heared the news that some oil wells in Saudi Arabia were temporarily closed. This means that my theory is true.

- The world is producing alternative fuel (Bio Fuel).

- The world's biggest producers of Bio Fuel is Brazil. They are planting sugar cane and converting it to Ethanol. That means Brazil will soon become a Top Economic power. Since they are not depending on imported oil and not affected by it's high prices, their economy will shoot up.

- Since Brazil is one of the major producers of Food, there will be scarcity of worldwide food production because Brazil uses it's agricultural land for Bio Fuel production.

My conclusion, if you want to become rich, invest your money in Brazil Stock Market. Do not choose stocks related to food, but related to steel and metal manufacturing companies. Because Brazil is also one of the worlds largest producers of metal. To produce it, they don't depend on foreign fuel, so they will have high and steady gains.

My worries is that the Amazon will be wiped out due to scarcity of agricultural land in Brazil. This is my only concern.

Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=13853.0