First Federal Bank, Port Angeles and the Economy
The CEO of First Federal of Port Angeles, Karen McCormick, spoke to the Port Angeles Regional Chamber of Commerce yesterday about the state of the banking industry. It was pretty grim; no surprise there.
She said: “We’re all very much aware that the end of the current economic challenge is nowhere in sight, and additional losses are quite likely. Because of this, banks are preserving their capital against future losses as opposed to making loans with it. And that means that Main Street isn’t getting the capital it needs in the form of loans. Without access to loans, businesses are going to fail, and jobs are going to be lost. If employees think their jobs are at risk, they're going to stop buying. And there's your one-two punch: That those business will fail, those jobs will disappear, people will stop spending.”
And we all thought that $700 billion Wall Street bailout was going to trickle down to Main Street.
Apparently not.
She said: “We’re all very much aware that the end of the current economic challenge is nowhere in sight, and additional losses are quite likely. Because of this, banks are preserving their capital against future losses as opposed to making loans with it. And that means that Main Street isn’t getting the capital it needs in the form of loans. Without access to loans, businesses are going to fail, and jobs are going to be lost. If employees think their jobs are at risk, they're going to stop buying. And there's your one-two punch: That those business will fail, those jobs will disappear, people will stop spending.”
And we all thought that $700 billion Wall Street bailout was going to trickle down to Main Street.
Apparently not.
Labels: Karen McCormick First Federal Port Angeles, Main Street Port Angeles
posted by Tom Harper at 6:29 PM
17 Comments:
The boutique stores will closing up one by one between now and early spring. Stores that sell essentials will survive.
Economic Darwinism!
Doom and gloom...y'all, it is a self-fulfilling prophesy...if the frickin media would, just for about 3 days, give us all the good things that are happening, sales would pick back up and we would be fine.
Has anyone gone to Costco, Wal Mart, and other local stores lately? Pretty brisk sales...I don't see too many people cutting back!! I know several businesses whose sales are UP this past month compared to December last year.
So you can doom and gloom all ya want...I'm goin' shoppin, 'cause things are REALLY CHEAP right now!!!
I sure didn't expect it to trickle down to main street, too much greed above us.
My place (such as it is) is free and clear and everything else is paid for and I have very few bills, or wants and needs.
Other than the fact that I always want more tools, a man as handy as me can't have too many tools.
And a big garage, that would be nice, but I'll thankful for what I do have.
I'll make out just fine until things get better but it's clear that many are going to be hurting. Can't blame them for not spending much money right now, they may need it to get by later.
I find enjoyment in camping and that doesn't cost me much so I expect to be able to keep doing it. Blah blah blah...
Be thankful that you don't live in Russia.
Moscow – As financial turmoil spreads and storm clouds gather over the entire world, many middle-aged Russians are feeling a familiar chill. Unlike most Americans, any Russian over 40 has vivid memories of two previous national economic crashes that brought personal ruin to millions of people.
I grew up with people that went through the great depression here, we were often pretty poor even after that and it was always hammered into me to be thrifty and be happy for what I do have.
That works for me, I'm okay with what I have.
At least the gun stores are doing well.
ooh, I'll bet Edna is shaking in her high-heeled boots with that comment.
I encourage everyone to get a gun, it's everyone's birth right to have any personal protection they can afford on a planet that is this sick.
Or if they need to resort to hunting for a little food. I don't much like guns but I keep a couple here.
Or if you like controversy you can do like Hunter and blow your brains out and have your balls blown into the atmosphere to shower down on the others, ha ha ha.
I'm enjoying her delusion that the media can change things. That's really quacking me up.
Oh, I know what I would like, a good wire feed welder. How about it Ms. Moneybags?
Doom and gloom, doom and gloom...let's go shoppin'!!!!
Well, one good thing about all these businesses closing is that there will be more parking spaces available for some of the business owners (you know who you all are)to park in. Now those pesky customers can find a parking space or two!
Hey Billy,
I think the perception that things are bad sown by the media really can depress people.
I was kinda down the other day when I saw the evening news, but by morning I had forgotten it all when I went to Costco and spent 1,487 dollars! I only expected to spend a hundred or so...but they have so much cool stuff this time of year!
Liz, I agree that the prices are really good right now. In fact I have blogged about that fact myself. But it doesn't mean that I'm going to put a lot of things on my credit cards to have them.
I've lived without them this long, I will continue to do so and mostly just pay cash for what I really need.
If I had the cold hard cash to spend right now I would buy a years supply of food.
I take care of the sweet old lady next door I worry about being able to afford to feed her a year from now when food prices may be going way up.
She has to get by on just $550.00 bucks a month and that isn't much.
Well, we'll just see how it goes, that is all we can do.
So about this wire feed welder, should I put out milk and cookies for you? Hell, I'd do a really good massage for a wire feed welder. :-) :-) :-)
Edna is stocking Uzis and Kalishnakovs at her store now, didn't you see her ad in the paper?
Anyway, I bank at Wells Fargo and as far as I know they are doing okay.
Well, at least most of the ladies that work there have nice assets.
"Uzis and Kalishnakovs"
Imports...meh
Get a real weapon like a American made Barret 50 bmg. Goes thru anything including level IV plates.
If you want an import, buy a Honda: They are made in Alabama.
Oh yeah... THAT'S why I don't read the Daily News...
I had a self-fulfilling prophecy once, but it never happened.
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