Bad home loans are sending tons of banks out of business, unable to recover from lost capital that went to fuel the housing market when it boomed a few years back. Now, unable to recover investments into housing developments, these small-scale banks that have minimal cash reserves unlike national or multinationals have little to ask help from, facing default on their business should they not get enough help from the Federal government.
The Government on the other hand is trying its best to bolster the economy and the millions of affected economic units that have been suffering, only to get mild recovery from ill-legislation that brought about the market’s collapse in the first place. Time is proving to be the main problem for the sheer length of negative economic growth and the many other dismal economic problems, local and global are making recovery harder than many would want it. Think positive and be optimistic that the problems of today are a mere test of the financial industry, that has to learn from the mistakes of the past, or have they?!?