Move your money

[Cannon Shell]

Originally Posted by dalakhani

The small banks have the chips stacked against in a massive way. Before you even start, overhead is bigger simply because of scale. The only way a small bank stays in business is by doing the business the big banks don't want to do. The more stable clients want higher yields on their deposits and dirt rates on their loans so the spreads are thin. The riskier deals...the ones where you can actually make a profitable spread...are deemed risky for a reason. Maybe its a commercial loan for a new office building going up or maybe its a small business loan. Either way, the small bank is really the only game in town.

A bank has to maintain a certain ratio of deposits to outstanding loans. With the hysteria, people are moving their money out of the small banks and into the "safer" bigger banks and, lets face it, some of these loans are going bad. Add it all up and it equals an insolvent bank. Its not like the small bank took these loans or are taking them currently with greed in mind. Its simply survival.

Its a mess...and its only going to get worse. It isnt bush's fault or Mike Leach's fault and it certainly isnt Obama's fault right now. I read all of these posts in this section about inflation and I just have to laugh. When loans default and businesses go down and banks aren't lending, wouldnt that set up for a deflationary environment?

hey you wanted to be a banker....

[dalakhani]

Originally Posted by Cannon Shell

hey you wanted to be a banker....

I want to be a horse trainer! I have nothing but envy and admiration for you in that regard.

Cheers!

[Cannon Shell]

Originally Posted by dalakhani

I want to be a horse trainer! I have nothing but envy and admiration for you in that regard.

Cheers!

It is great in many ways but can be horrifically frustrating and financially challenging at the best of times...

[GBBob]

Originally Posted by Cannon Shell

Yeah sure, he is just a product of that formidible Texas tech recruiting machine.... seriously the guy is an excellent coach who has turned a 2nd rate program into a nationally prominent one despite having had very few NFL prospects. His offense has had 3 seperate QB's win national awards despite none of them getting a sniff at the NFL. He has won as many bowl games in his 10 years as TT had in its previous 60. In 2008 they were the 8th ranked school in graduation rates with 79% of players graduating with a degree. He was 84-43 at Texas tech with 5 bowl wins in 10 years. That is a great coach.

You probably liked Bobby Knight too