Will The Banking Industry Fully Recovers

Best Growth Stock – With disappointing earnings from Bank of America one question remains the mind of investors and economist, will the financial or banking industry recover from the recession. It seems that the gambling that this institutions took during the last decade still hunting them. The financial crisis brought to us by irresponsible financial institutions and irresponsible banking practices has remain the center piece of this recovery. As we continue to move past this recession there are several factor that if not solved can take a toll in this economy.

The housing crisis still hunting the financial institutions. As Bank of America and other banking industries keeps getting loses from irresponsible lending practice you will see less money being lend to the good hard working families. This creates a backlash since banks will be afraid of lending but people won’t get financing when they can afford to pay. The housing industry gets penalized and ultimately paralize by not selling the units that they have available in the market. This cycle keeps moving as they will fire people from this big and important industry. The people that got fired stop making payments and spending and just we go into the recession we are currently experiencing. Hosing prices goes down as the demand falls and people will end owning more than the value of their home.

The government needs to take more responsibility and stop rescuing private financial institutions that in the first place created the problem by their irresponsible lending practices. It is not in the best interest of the tax layers to put their money into this banking institution just for the sake of creating an environment of stability. Will Bank of America rescue you the tax payer if you were not able to pay your bills. Clearly the answer is NO. Why we have to rescue them? This creates a bigger problem and is that the budget deficit keeps going up. In the mean time we own more money to China just to keep Citibank safe in our states. Read More About Citibank Earnings.

The deficit that the government is facing is unimaginable. It is so good to see how the financial institutions keeps talking about saving for retirement but the government keeps spending for disaster. As a nation the deficit has to be controlled and we must have the proper spending limitations in place. Hopefully with the new congress the government will have checks and balances in place to curb down on spending and the deficit. This will have a good effect in the economy as a surplus as the one seen in the 90s can propel the government to spend more money. But the money needs to be on the table not borrow. Ultimately the surplus can be given back to the tax payers in a form of tax break which will ignite the economy.

In order for the economy to turn around and the banking industry to recover form the current crisis not only the financial institutions has to enforce new rules but the government needs to have caution on its spending. Recovering the hosing industry is of maximum importance if the banks wants to go back to the big earning days and beat Wall Street like they did many years ago.