By James McKee
138 banks seized this year in the United States signals a still-dismal outlook for the upcoming fiscal year. With all the effort made to stabilize the economy the banks are still failing and being seized by the FDIC that then has to cover any losses a bank customer sustains over $100,000.00 assuming the bank is insured. Smaller banks are especially at risk due to their lower holdings and overall lack of outside support. While not as crucial to the overall economy as larger banks smaller community based banks offer specialized services to their customers and are more likely to support small business.
Small businesses in America are suffering more at the moment than in any time in history since the great depression, by allowing these small banks to fold we are encouraging further damage to small businesses. As this happens the value of US currency would of course drop as well. I would also like to point out that as small businesses and small banks fold their property and market share is consumed by larger entities, once these entities have a monopoly prices will rise exponentially. The supposed goal of capitalism is to foster the ability for anyone to be able to pursue their dreams if they work hard and play by the rules.
It is the goodwill of other people and businesses that enable those suffering through hard times to persevere. It is this ideal that has enabled many businesses to survive in the United States. By allowing these support systems to collapse we are encouraging a very dark time for the United States and its currency. As traders we should look upon the upcoming G20 summit and the results therein as encouraging because any change is good change, however I think everyone would breathe a sigh of relief if the little guy could win once in a while, I know I would. Happy trading.
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
