How much can the average American Joe take, as their political leaders show greater willingness to feed the rich and care little for the everyman? After the September 11 attacks, Americans where asked to go out and spend. The strength of American was in its ability to spend money like there was no tomorrow. As [...]

The Whybanksfail blog primarily looks at the health of banks industry. Recently the Banking sector has experienced a revival or sorts, base on what we believe to be a bear market rally. The euphoria on Wall Street has caused to explore our parts of the economy to see what global recession of 2008/9 has in [...]

Alcoa announced today that earlier cost-cutting changes weren’t enough due to the economic downturn.  They will make more work-force cuts, close plants, and reduce capital expenditures by 50%.
The layoffs will affect 14.5% of the current employees and contractors totaling 15,000 fewer positions. Â
Aluminum, Alcoa’s main business, prices have dropped significantly since earlier in 2008, when growing [...]

What will 2009 bring, well the crystal ball at Whybanksfail has a small crack in it, so we are not going to relay on it anymore, but lets exam how 2008 ended to see if there are any ongoing signs that might predict the coming year.
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To be sure, most news agencies seem to think [...]

An insightful blog, The Path to the Pegasus Letter, writes about how China is handling the global financial crisis in their article, China continues to lead the way.
The article looks at 5 advantages China currently has due to their economic policies.
Those advantages are:

Don’t allow a financial meltdown based on idiocy and ignorance
Don’t enact policies which [...]

Weakening Global demand has caused the third consecutive drop in exports, showing more signs that the US economy is shrinking faster then estimated.
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Breakdown:
·          Deficit up 1.1%
·          $57.2 billion from a revised $56.6 billion in September
·          Exports dropped to the lowest level in seven months
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Breakdown: US sales
·          U.S. aircraft
·          Automobiles
·          Chemicals [...]

Back in September, Why Banks Fail reported on, what we thought was, the beginning of the end for OPEC.  The post was called What About OPEC?
While looking around at other financial sites I ran across a link to Are we watching the death of OPEC? on WiseBread’s post Best of Personal Finance Roundup: Cyber Tuesday.
I [...]

China had announced their massive $586 billion bailout a few days ago. Â
Where will the money come from?  China’s net exports are up, but that doesn’t account for $586 billion worth of cash.
China has about $1 trillion of U.S. securities, including $541 billion in U.S. Treasurys, and $200 billion in agency securities. Â
China has had [...]

One of the key mechanisms with which the United State has been able to fund there continued growth was through cheap lending. If one of our biggest trading partner cuts off mutual banking operations with us, what does that mean for both our countries.
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According to an article in the South China Morning Post on [...]