Historical Perspective Lesson #1: Bank Failures

Hey, I know that the economy is slow and that unemployment is rising, the market is down, etc.

I have seen people in my office being laid off, etc., but I am tired of 20 and 30 somethings talking about how we are somehow on the precipice of the Great Depression.

Just because this is the worst economy that you have seen, does not mean that the world is over.

7% unemployment does not equal the Great Depression (>25% unemployment, breadlines, etc.). Germany (and the rest of Europe) longs for 7% unemployment.

I do not know about you, but every store / restaurant that I go to is busy. Look at the gate for 'Paul Blart Mall Cop' - things cannot be that bad, right?

Let's have a discussion about bank failures. Today Drudge is leading with a story about a bank failing in California. Bank failures are never a good thing, but let's check the stats on bank failures by decade.

http://www.usnews.com/articles/business/economy/2008/07/15/the-10-biggest-us-bank-failures.html

2000-2007: 32
1990-1999: 925
1980-1989: 2,036
1970-1979: 79
1960-1969: 44
1950-1959: 28
1940-1949: 99
1934-1939: 312
Source: FDIC Historical Statistics

I realize that this is only # of failures and not $ and that the largest $ failure occurred during 2008, but give me a break. Let's examine the data and not what cnn.com wants to talk about.

It is not the end of the world (yet), so relax and spend your energy on putting your own house in order.