The market will close today and then the report cards will be revealed. Will your bank be one of the strong ones? Maybe just average?
What if your bank gets a failing mark from the All Knowing, All Caring Government? What if Tim The Tax Cheat doesn't like my bank's balance sheet? What then?
The "bad" banks will be given time to raise more capital. How does a business raise more capital? They can make more sales by offering higher interest rates in hopes of luring more deposits. They can sell more stock.
More stock sales may dilute the existing certificates. Plus, who do you think would invest in one of these "bad" banks. I can imagine depositors will move cash reserves to a "good" bank.
My fear is the government in its great wisdom will be issuing death certificates for many banks after the market closes today.
'til later
Bargain Barb
- Bargain Barb
- Naperville, Illinois
- Greetings! I have years, no decades, of financial experiences to share. I have a passion for education. I am a control freak in that I need to know where my $ goes. I continually ask myself do we need that, what risks are we taking with that investment, how/when can we get at our $, and just how much does Uncle Sam demand of our every earned $. Stay tuned to my life choices now and my references to life choices/experiences from my past.
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