munky.org|v3.0

Is it just me, or is the economy giving us mixed signals. The Dow Jones has recovered nearly 3000 points from it’s low, yet 84 banks have failed this year as of last week. That averages out to 2.5 bank failures per week. Ouch! There are still signs of things sinking, particularly in commercial real estate. Yet other signs show we are improving. Mix signals? As the only vice presidential candidate we’d wanna see in a centerfold would say, “you betcha!”

However, this is a little bit of silver to an otherwise dreary lining. Our recession is moving through its progressions, which equals progress.  Our markets are also clueing us in that the big picture ahead is looking brighter. Just remember that the markets don’t reflect our current reality, but our perceived future. We’re continuing to hit turning points, which is good news for our future.

Unfortunately for us laid off folk, future doesn’t fix the present.

But being laid off does have its advantages. Especially in a recession. This is the perfect time to step back and take stock in our life. Do we like where we were going being we were laid off? Should we change paths? Would furthering my education advance me, or should I look at another career. Some of us may be used to working in industries that routinely lay off and rehire (defense contractors and the like are notorious for this. My friend’s dad has been laid off and rehired between Solectron and General Dynamics for almost two decades, ouch!). Maybe this one stings a little bit more, and makes us realize we need to find something more stable.

So to all my fellow unemployed/underemployed persons, use this as your opportunity to start going in the direction you want to go. Although the “potential employee” pool is larger than normal, we now have the opportunity to make a move and shine. So take advantage,

As for me, I used this as my sign to go ahead and finish school. I was almost done with my associates when I was laid off (I graduated in July), but instead of taking time off before transferring to a 4-year, I took being laid off as my sign to go ahead and get it done with. I’m now in my first semester at UNCC, majoring in Mechanical Engineering and Physics, with a minor in Mathematics. I still have withdrawal pains from the job world, and it is still weird being the “old fart” around campus. yet it has already been challenging and rewarding, and I can now focus on everything a lot more. By the time we’ve mostly recovered from this recession, I will have positioned myself to be a strong candidate for anywhere I want to go.

So use this opportunity wisely, recessions don’t happen everyday.

FDIC Insures Deposits Up To $250K

I ALMOST FORGOT TO MENTION THIS! Jeeze, I could get on myself for that. Two banks collapsed into the FDIC’s waiting arms this weekend, bringing the total number to 16 for 2009. There were 25 in 2008 total, so you decide. That’s 16 banks in 2 months, and there are another 10 to go (not to mention a number of other problems, such as commercial real estate, that may implode at any moment). It was another couple of small banks, Heritage Community Bank and Security Savings Bank. Heritage Community Bank was a bank out of Glenwood, IL, while Security Savings Bank was from Henderson, NV. MB Financial, NA and Nevada State Bank were the recipients, respectively.

The grand total to the FDIC (::cough:: taxpayers)  for these two? $100.7 million. A small number, if you consider a small number to be more money than most of us will ever see in our lives. Hope that puts that into perspective.

The FDIC said that the current crisis will probably cost the fund $65 billion by 2013. Or in other words, less than AIG’s bailout.

To finish off tonight, the government did announce that it will take control of 36% of Citigroup. That is 14% + 1 share of nationalization the good ol fashioned way. Now we know what government and private equity has in common.

We all know what that means. In a few hours the FDIC will release the names of 1 or more banks that probably failed this weekend. The usual hoopla about customers will continue to be able to use their debit cards over the weekend, and that the bank(s) will be showing a new name come Monday.

This week was looking somewhat positive, then today the banking sector sank, and quickly. Once again a mad rush to sell the news. Citigroup shareholders have a legitimate concern with having their shares diluted, although it shows how few people really do have a one track mind. The move to other banks shows the point that the market still has a lot of fearful speculators, trying to guess the next one to tank.

We’ll be finding out over the next few hours which banks will be standing with flags half mast in the morning.