If you go to the FDIC website, you will see a list of several banks that are no longer with us.  They’ve gone on to a better place (sniff sniff).  Ok, seriously people, banks are closing left and right.  It’s not as big in the media as it once was but banks are still closing weekly.

Many attribute the real estate market, the government, the war, etc, blah, etc.  However, according to New York University’s Stern School of Business professor, Lawrence J. White, the banks are failing because they merely made loans to people that just could not pay them back.  Sounds simple enough.

I have a friend who received a $10k loan from a bank with no collateral.  It totally blew my mind at the time that the bank would just give someone $10K no questions asked.  They asked if he had a job.  He said yes.  They asked how much could he afford a month. He gave a number.  That number became his payment.  Sadly, that bank is no longer around. 

Today, we care to know if the banks can bounce back.  Can they climb to the power they once had?

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