More Banking Trouble

Here is an article about banks needing more money from the government. The scale of this problem is simply amazing. The good think is that not every bank was reckless in their loan practices. For those that were, how could they not have realized that billions upon billions of dollars in loans were never going to be paid back?

The recession is making things worse...

"Industry analysts estimate rising unemployment and business failures will lead to another $500 billion to $750 billion of losses in coming months. That could bring total losses from the credit crisis to $1.5 trillion to $1.8 trillion, twice as high as earlier estimates."

What is even more amazing is that people think the recession will be over in 2009 or 2010. There is a major shift in our economy happening right now. Millions upon millions of jobs are being shed as companies prepare for lower rates of consumption. I doubt our buying habits will ever be the same. I've noticed it in advertising already, at least on a local level. Commercials are emphasizing the value and quality of their products over bells and whistles. I see a move back to quality products that last a long time, instead of cheap products that you buy once a year. Entrepreneurs will need to figure out how to make this happen, and hopefully employ people to produce and sell these products. But I see this as a 10 year adjustment at a minimum, much longer if businesses continue to ship manufacturing overseas.

Banks in Need of Even More Bailout Money