FDIC Friday - 40 Bank Failures in 2012 and Counting

Logo of the United States Federal Deposit Insurance Corporation, which incorporates the seal. (Photo credit: Wikipedia)

On Friday, the FDIC closed yet another bank, bringing the total bank failures so far this year to 40.  It is interesting to note that this represents more failures (60% more) than 2008 when we were in the beginning of the Financial Crisis.  This is certainly not a sign of a robust economy.

Indeed, the real unemployment rate is probably north of 20% (versus the 8.3% official government estimate) if you consider all the people who have given up trying to find work.

 

Everywhere today, it seems, there is more evidence of the "new normal," an era of low investment returns, weak economic growth and growing government regulation which poses a significant challenge for investors.  For now, it seems, cash is king.