Hello all: I was reading this morning that the number of banks on the FDIC's watch list increased to 117 from 90. Expect that number to go higher still. So far, 9 banks have failed this year, which is twice as many since 2005. I think this goes to show that we're not our of the woods yet. The last time there were this many banks with problems was in the early '80's when the savings and loan crisis caused over 2,000 banks to fail.
As with anything, it's going to take a while for things to run their course. I'm thinking at least another year. Even up here in the Pacific Northwest, there are signs of trouble. Every bank has bad loans on their books from real estate builders and developers. And their stock prices reflect that. We're pretty slow up here with purchase activity. It's like the buyer is waiting for some good news before jumping back in.
How is it in your neck of the woods? I know some areas such as Las Vegas and Los Angeles are seeing increased sales activity. Up here I think there might be more sales starting either Spring or Summer of next year. Until then, it's imperative that we do everything we can to let the customer know that it's a great time to buy! Have a wonderful day!
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