CHESSNOID

I know the recession is over and the economy has been declared to be revived which caused the stock markets to rally.  The Dow had a big 199 point day.   It looked like for a moment that rising foreclosures and unemployment didn’t matter.  Then today another report  indicated the opposite was true that the economy was still not saved.

NEW YORK, Oct 30 (Reuters) –

The Dow industrials suffered its worst slide since July on Friday on concerns that the economic recovery won’t be robust enough to sustain the seven-month stock rally, while financials sank on renewed worries about Citigroup’s balance sheet.

Investors unloaded shares across the board on the day that marked the end of the fiscal year for many mutual funds, putting the S&P 500 on the brink of a correction.

Of course the market reacted with a 250 point drop in the DOW and over 2% drop in the other stock markets.  Ouch.  Then after the end of business day,  they announced nine banks were closed and taken over by the FDIC. WOW!

NEW YORK (CNNMoney.com) —

Nine subsidiaries of FBOP Corp., a multistate holding company that included California National Bank of Los Angeles, succumbed Friday to the nationwide banking crisis, bringing to 115 the number of banks closed by regulators so far this year.

The Federal Deposit Insurance Corp. said the nine banks in California, Illinois, Texas and Arizona that made up the privately held FBOP were taken over by U.S. Bancorp (USB, Fortune 500) of Minneapolis. The banks, which had combined assets of $19.4 billion and deposits of $15.4 billion, will open Saturday as U.S. Bank branches.

The nine banks are Bank USA N.A. of Phoenix, California National Bank of Los Angeles, San Diego National Bank of San Diego, Pacific National Bank of San Francisco, Park National Bank of Chicago, Community Bank of Lemont in Lemont, Ill., North Houston Bank in Houston, Madisonville State Bank in Madisonville, Texas, and Citizens National Bank of Teague, Texas.

So is the recession really over?  Was the GDP growth real expansion based on production or accounting tricks?  Will unemployment continue to rise, foreclosures continue to break records, and many more banks to close as we wrap up this year?