Job and Bank Worries Put Stocks on the Negative
Posted By Administrator
Date: October 10th, 2009
Category: Banking Industry News
Yahoo! News reports that stocks sank on Thursday due to job and bank worries. The Dow Jones industrial average, for instance, registered a drop of 112.10 points ending at 12, 582.18.
Federal Reserve Chairman Ben Bernanke has told Congress that the widening credit crisis will more likely result to some bank failures and affect small banks the most, especially those that invested heavily on real estate.
As I see it, Chairman Bernanke is being realistic here. I have to agree that this financial crisis confronting the banking industry puts more pressure to small banks than to big ones as the former are more vulnerable to market changes than the latter. Also, consumers should brace themselves and expect to feel the burden in the coming months as a result of this widening credit crisis.