FDIC Seeking Private Investors

August 25, 2009

Photo by I Busca

Photo by I Busca

With fewer larger banks unwilling to purchase troubled banks, the FDIC is now looking to private investors to bail out these banks. Private investors recently extended funds to CIT Bank to keep it from bankruptcy filings.

Since private investors tend to cut costs by eliminating jobs, unions are against private investors getting involved with acquiring distressed banks.

The involvement of private investors would relieve the U.S. of their intervention in some of the failed banks earlier in this economic crisis. Warren Buffet recently made a statement that the U.S. “must address the massive amounts of monetary medicine that have been pumped into the financial system and now pose threats to the world’s largest economy and its currency.”

The federal deficit reached an all-time monthly high of $180.7 billion for the month of July 2009.

Exploring Business Solutions

November 14, 2008

Since my backgound is in financial services, I will be speaking from a financial perspective.  I am very concerned as are most people are, about the state of the economy.  As a nation we are suffering from the consquences of having too much debt.  Did anyone ever think that this attitude would catch up to us at some point in time?

I am hoping that someone has the answer to this problem.  We have to manage the debt that we have in this country.  Not only has it affected this country, but it has affected other countries as well.  Debt has become a way of life for us.  The only way to reduce or eliminate it is to stop desiring the things that would lead to living a lavish lifestyle.  This is going to take some discipline.  We’ll be suffering from withdrawal symptoms, but the longer we subject ourselves to this process, the easier it will be to say “no” to more spending.

Children should be educated on handling debt and using credit cards responsibly.  Ideally, they should not be approached by the banks unless they understand the responsibilities that go along with using them.  However, there are reports that the banks are targeting teens as well as college students about their services.

Press Release: Gail Cavanaugh’s Business Solutions Informs Teens about Credit Cards

© Gail Cavanaugh and Cavanagh Business Solutions, 2008. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Gail Cavanaugh and Cavanaugh Busines Solutions Blog with appropriate and specific direction to the original content.

Kids waiting by Anne Bradshaw, courtesy of Morguefile

Kids waiting by Anne Bradshaw, courtesy of Morguefile

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