Content Country-Formatnewsletter-Format Article for Newsletter

You Are Here: Home Page -> Formatnewsletter -> Format Article for Newsletter

Newsletter Article

Here is US Banks Are In Trouble formatted for a newsletter with 65 characters per line.

US Banks Are In Trouble

by ferdiefrederic

In recent times, the status of our economy has really been
questioned. From the weakening of the American dollar to an
increasing amount of debt, the countries current financial crisis
has continued to dwell and even breed. Now, in recent weeks,
concerns are being rose up about the status of our banks. From
local institutions to corporate lending companies, companies are
feeling the effect all across the board.

One of the nations largest companies to close in recent history,
Indymac, symbolizes the sorry state of our economy and the
dwindling industry. This company contained almost 32 billion
dollars in assets off of savings and loans accounts. In addition
to, it was also connected to the Countrywide Financial
Corporation. Such a giant taking a K.O is not good news for us
American citizens and for the companies that utilize us to make
profit.

Two other financial giants that are in much trouble is Fannie
Mae and Freddie Mac:

Fannie Mae is a government sponsored organization also known as
the Federal National Mortgage Association and is said to own
approximately (with the help of Freddy Mac) half of the US
trillion and trillions dollar mortgage market. Initially created
in 1938 as part of Franklin Roosevelts New Deal program in an
effort to provide stability to the nations economy and mortgage
market, Fannie Mae has since been converted to a private
organization.

Also known as the Federal Home Loan Mortgage Corporation, Freddy
Mac is also a government sponsored company which holds major
responsibilities when it comes to authorizing loans and loan
guarantees. Founded in 1970, Freddy Mac was in a sense added to
provide competition to Fannie Mae, which from 1938 to 1968 held a
monopoly over the mortgage market. Thus, the US government
chartered the corporation in order to expand the mortgage market
and provide multiple options to homeowners.

When you see the importance of these companies and how they hold
such a strong foundation when it comes to the American economy
and the mortgage market, one has to ask what is going on when
these companies are reportedly in risk of closing and needs
government assistance to stay afloat.

Despite the fact the US has issued the FDIC act to insure our
money within savings accounts it has been reportedly stated that
there is approximately only 50 billion dollars within the
account. Including the fact that Indymac, which recently closed
will eat up anywhere up to 8 billion dollars of the fund the
government can be in trouble and might have to find new ways of
backing up the savings accounts of millions of consumers.

Industry analysts have stated that this economic pinch might
effect anywhere up to 90 banks. Even though lists compiled by
experts have not been publicized stock markets and traders have
definitely been paying attention and trading and buying to keep
in step with the recent rumbles within the business and financial
world.

When looking into the future, we have to ask ourselves what is
the future for our economy. The Great Depression, is that a
possibility? Will our stock markets shut down and trading with
foreign countries cease, one has to ponder. Maybe its safe to say
that we might have to start keeping our funds with us where we
sleep at, under our mattress!

Article provided by <A
HREF="http://www.s-proprietor.com">S-Proprietor.com</a>. A
website dedicated to entreprenuers, work at home business
opportunities and resources.

Syndicated by Top Gazebos - www.topgazebos.net

Quick Content Search:
Content Country

Welcome Guest

Author Country

Publisher Country

Essentials