End of Banking as We Know It (Musical Tribute)

The End of Banking as We Know It

Clearly, the entire financial industry is in the midst of a makeover. And while no one wants to call it nationalization, perhaps we can agree on this much: The money business as we have come to know it over the last two decades — with its lush salaries, big-swinging risk-takers and ultrathin capital cushions — is a goner.

Got that? Toast. Toe-tagged.

Two decades? I trace it back three decades. That's when we fell off of the gold standard. We're all big-swinging risk-takers with ultrathin capital cushions now, even if all we really want to do is bury unleveraged savings in our backyards.

When a driving economic force takes a big dive, the ripples are far-reaching. Change is painful, there is no doubt. But American business can be awfully good at reinventing itself when it needs to.

Once American business saw that automation and outsourcing could create goods cheaper than American workers could, American business reinvented the "awfully good" layoffs of American workers.

Once American business saw the Federal Reserve lower interest rates to unbelievably low levels in 2004 and held them there, American business reinvented the "awfully good" lending standards heading into the Great Depression.

Once American business saw that the profits in the banking and auto industries had not only completely dried up but had turned decidedly negative, American business reinvented the "awfully good" idea of begging our government for taxpayer bailout money to help fend off the next Great Depression.

Once American business saw that the banking and auto industries were failing and a Great Depression seemed imminent, American business reinvented the "awfully good" permanent destruction of American jobs.

Once American business realizes that there might be way too many malls and restaurants for an economy with trillion dollar deficits, one can only imagine what American business might reinvent next.

Buckle up.

Muskegon restaurants, retail shops buckle under economy

Economists are predicting the next national real estate "bubble" to pop is with commercial property. As local and national restaurants and retailers close, the shopping centers and strip malls they occupy will become vacant, forcing highly leveraged owners into foreclosures much like homeowners have experienced the past two years.

The leverage isn't working out all that well for the highly leveraged these past few years.

"People are seizing the opportunity," Post said. "They are employed but don't know for how long. This is their opportunity to start a new business. I remain optimistic on the downtown's future."

I want to make sure I understand this correctly. People are seizing the opportunity to start their own businesses because they are concerned the businesses they are currently working at might be forced to lay them off? That's a reason to remain optimistic? At what point does one become pessimistic if a banking crisis and a housing collapse can't do it?

For Businesses Big and Small, It's Lights Out

"This is now an unprecedented time as far as how bad things have gotten," said Scott Peltz, managing director of RSM McGladrey, a consulting firm that helps turn around troubled companies.

Other than that though, I feel fine.



It's the end of banking as we know it
It's the end of banking as we know it
It's the end of banking as we know it and I feel fine