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S&P/TSX +23.80 (12,577.28)
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New Press Release Category, U.S. Bank Failures - StockReserchPortal.com
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January 21, 2010
Good Morning:
New Press Release
Category, More On U.S. Bank Failures
New Press Release Category
Yesterday we added an 18th Segregated Press Release Category to
StockResearchPortal.com - 'Operational Updates'. We have developed
an automated system that sorts Press Releases for Subscribers by Press Release topic,
saving them the time and energy required to read all Press Release headlines to
find Press Releases of interest.
'Operational Updates' is located on the right side of our Home Page under 'Today's
Press Releases', and in each of our Company Data Pages. Press Releases are updated
in real time each trading day on both.
More On U.S. Bank Failures
Following from Monday's e-mail - where I said I would follow-up on U.S. Bank Failure
data - I found an article dated December 19 titled 'FDIC
expects number of U.S. bank closures to accelerate next year'. The
article reported 140 U.S. bank failures in 2009 to mid-December (up from 25 in 2008,
and only 3 in 2007), and that The Federal Deposit Insurance Corporation ('FDIC'
- the U.S. receiver for failed banks) is preparing for a greater number of U.S.
bank failures in 2010 than was experienced in 2009 - apparently planning to
increase staffing levels in 2010 by 23%. It strikes me as significant in the
context of changed U.S. economic conditions that there were only 3 bank failures
in 2007.
A second article this past Monday titled 'Bank Closures Accelerating as FDIC Seizes Fourth
Bank of 2010' says 4 banks have closed in the first two weeks of 2010 (one
more than occurred in all of 2007) - auspicious to say the least.
From what I have been able to determine, most U.S. bank failures can be directly
connected to bad residential and commercial mortgage loans. Relative to that,
a 'Seeking Alpha' article this morning written by Andrew Horowitz titled 'More Government Spending Fails as Homebuilders Confidence
in a Free Fall' says the U.S. Homebuilder Confidence Index - generated
by The National Association of Home Builders and Wells Fargo - has dropped this
month to the lowest level (15) since last June - where readings under 50 apparently
mean most respondents view conditions as poor.
It seems to me that given continuing U.S. increasing unemployment it is unlikely
the U.S. housing market is going to turn around in the near-term. Assuming
that to be the case, it becomes more understandable to me why the FDIC is 'staffing-up'
in anticipation of a further increased number of U.S. bank failures in 2010.
Again, I consider the number of bank closures going forward to be well worth focusing
on when considering one's investment strategy. I am a long way from believing
the U.S. currently is experiencing meaningful economic recovery, and escalated bank
failures will do nothing but reinforce that for me should they occur. I also
continue to see a serious disconnect between multiple factors that on their face
strikes me as negative to U.S. recovery and the recent buoyant U.S. equity markets.
Notes to Readers
This email and its content is in no
way to be interpreted as an endorsement of one or more of the companies mentioned
herein, a suggestion as to the future direction of the stock price of one or more
of them, or a suggestion or recommendation to buy or sell the shares of one or more
of them. Rather this email is simply a short overview commentary and tutorial
demonstrating the type of information available on StockResearchPortal.com and how
to access it.
The owners of Stock Research DD Inc. (the owner of StockResearchPortal.com and StockResearchPortalBlog.com)
or their families, entities in which they have ownership interests, and officers,
directors, employees, agents, partners, affiliates and partners of Stock Research
DD Inc. may beneficially own securities and participate in Private Placements of
companies referenced in this E-mail. The fact that one or more companies are
referenced or discussed in this E-mail should not be construed as an endorsement
or investment recommendation with respect to those companies or their securities.
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