Please excuse me for using a technique that I've learned from the national media. That is, get that headline that draws attention, even if it isn't supported by the articles content.

I was reading an article from Fortune posted on CNNMoney.com entitled "Banks are down, but not yet out,"  and it made me wonder, if things are as bad as reported than why no failures? It mentioned only one failure, Internet startup NetBank.They kind of got stopped in their tracks before they got going. It's easy with hindsight to say that the timing was all wrong.

Banks do fail you know. Back whenever, I believe somewhere in the late 80's, early 90's I worked in a bank, which was closed by the Gov. Actually in the great state of New Hampshire they closed our 5 major banks in one day. Then, by some miracle, after taking out all the bad loans, they reopened what was left as 3 different banking entities. They actually did it over the weekend. So, it can happen.

But will it?

Well, we're seeing big writedowns, and problems with CDO's (collateral debt obligations), and liquidity puts, someone actually guaranteed the performance of the subprime paper, BUT, no failures. I think it comes as no surpise that I believe it just won't happen. You may think that the only reason is that the government won't let it, which they won't, but there's another reason. The system is really that strong. It can weather this storm!

Yes we will continue to see the bad press, because that's what the press likes to write about. However, our system will endure and some smaller entities will grow and possibly replace some of your current old favorites.

In essence some of the smaller banks were actually saved by their size, or lack thereof. They might have wanted to play with the big boys, but just didn't have the ability to do so. Many/most continue to be quite strong. Imagine that. 

Now there's an interesting story that will probably never be written.

Galore; according to Webster's, means in abundance, plentifully.

Will we see bank failures in abundance?

Not likely.

At all?

Don't think so.