Banks going out of business

Written by: Karen Thompson - Guest writer

The Federal bank regulators now say as reported on CNN.com just two weeks ago that 100 - 200 banks mostly small banks will go out of business with in the next year. What is going on? Why are we still asking if we are in a recession or not....can we all say YES and move on. First thiing to repairing our economy is to admit there is a problem and then start fixing it. Everyday we don't admit that we are in a recession is another day that goes by that we don't fix things. People are losiing their homes, jobs, retirement etc...

The silver lining on all of this is that our own state of Michigan has been in a recession for a long time, so we've already been beaten up and are use to the bad times. Now with news of riots and bad economics coming out of China and India we might see a shift of the U.S. automakers readjusting their game plan and finally realize maybe it wasn't the greatest plan to move our factories overseas.

If people in the U.S. can't afford the companies products then it doesn't matter how cheap the labor force is....if no one is buying, then no one is buying. Greed has come full circle and now we are paying the price. We need to go back to the basics and remember why we became who we are as a nation. It was because we built things and sold things better and faster then anyone else. Well, today I moved my mutual funds around and made sure my funds had a limit to the financial sectors. I've gotten burned too many times in the past two decades and have learned my lesson....the Bear Sterns bank failure is just the begining....protect your money and slow down your spending to protect your assests. We are headed for rough waters and if your not prepared it could destroy everything you have earned. I'm not saying pull all your investments....but I'm telling you that you need to monitor them closing and don't panic. Place them in areas that haven't been hurt from the bad news and keep watching. If another chip falls...then you might want to make another change. If you ignore it...you will most likely lose everything.

In summary, banks failing really is a bad thing and we are in a recession. Pay attention to your investments and prepare yourself for a very bad fall. You can survive this mess if you just take the proper action and steps now to protecting yourself and your family. Best of luck to all the readers and hopefully this recession is a short one.