Regulators shut Washington's Horizon Bank

Regulators shut Washington's Horizon Bank
Regulators shut Horizon Bank in Bellingham, Wash.; move marks first bank closing of the year

The 140 bank failures last year were the highest annual tally since 1992 at the height of the savings and loan crisis. They cost the insurance fund more than $30 billion last year. The failures compare with 25 in 2008 and three in 2007.

FDIC Chairman Sheila Bair has said the number of bank failures could rise further this year. The agency expects the cost of resolving failed banks to grow to about $100 billion over the next four years.



Why this stock market keeps rallying if there is not real economic growth? More people get unemployed, more bankruptcies, more foreclosures and the Dow, Nasdaq and S&P keep rising!

Even when the unemployment news is bad the market still goes up!

http://finance.yahoo.com/news/Regulators-shut-Washingtons-apf-2882034475.html?x=0

 

Unemployment doesn't have to fall for the market to rise, companies need to become more profitable for the share market to rise. Companies have been downsizing to improve profitability, so that is one reason why the sharemarket can rise while unemployment is rising.

 

That's not always true and I agree to a certain degree with you..... Somebody has to buy the products of the company at one point unless the company sells overseas.

If most of the compines listed on the NYSE operate in US than what you say may only be right for specific situations.

Imagine a logic is 100% right, what if the unemployment is 30, 40, or 80%?
How do company will produce enough profit for all the share if there is nobody to buy their product since the unemployed as you know will be barely surviving.


In today's situation there is no new jobs added. It is only lay offs after lay offs.

 

The change has only been an increase in unemployment from 6% to 10%, not enough to decrease customer bases significantly, but enough to reduce wages expenses significantly.

 

If most of the compines listed on the NYSE operate in US than what you say may only be right for specific situations.