My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I adhere to the philosophy of trend following.
Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets me apart from other traders is that I am not only concerned about the return on investment but how much risk I will have to tolerate to achieve my goals.
If you are interested investing with Andrew Abraham via my managed accounts please come to Abrahamcta.com.
A New Depression?- More Bank Failures
Is there a new depression headed for the world. One of the signs of a depression is bank failures. It is now almost a weekly event that somewhere in the US a bank fails and is taken over by the FDIC. Last week there were two more bank failures..possibly bringing us closer to possibly a new depression. So far this year…29 banks have failed.
What is more disturbing is that one of the banks was a commercial bank Silverton Bank in Atlanta, Georgia. This was the second largest failure this year. Silverton did not work with consumers but with other banks. Silverton had $4.1 billion in assets with $3.3 billion deposits from approx 1,400 client (sub) banks in 44 states. If one would divide out the number of bank failures there are approx 1.6 bank failures a week…multiply this by 52 weeks…this brings up the number of bank failures to 80+. If the pace of bank failures increases you do the math. A new Depression? In all fairness we are not at levels seen in the Great Depression or even in the 1980s, but this is extremely disturbing given the fact of the results of the Stress tests( if you believe them).
Today front page news is that Bank of America needs another $35 Billion dollars. Remember the words Too Big To Fail? What could happen if one of these 19 major banks fails. Of course the FDIC will bail them out… Sure…and where is that money suppose to come from? Is it possible that one of these 19 major banks could wipe out the funds in the FDIC and bring us closer to a new Depression? Not being an alarmist… what about all the credit debt that will need to be written off…the commercial real estate loans…and not to mention the glut of unsold housing. I am sure all of these issues impact to the negative any banks profit.
Too Big to Fail? A New Depression?Bear Market Rally?
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