Two More Banks Fail This Week

Two more banks were shut down by federal regulators late Friday, who sold the banks' deposits to Mutual of Omaha Bank. It brings to seven the number of bank failures so far this year. The Federal Deposit Insurance Corp. said it was appointed receiver of First National Bank of Nevada, based in Reno, Nev., and First Heritage Bank of Newport Beach, Calif. - both units of First National Bank Holding Co., of Scottsdale, Ariz.

Back in the late 80s and early 90s there were over 1,000 banks that failed. I think that we will see at least that amount in the coming 1-2 years before the current credit crunch has played out.

For investors there’s nothing more important than recognizing that business, the economy, and markets always move in cycles, not endless straight lines. Recessions follow boom times, bear markets follow bull markets, bull markets follow bear markets – every time. This current bear market will not likely play itself out until sometime in 2010. The good news is there will be opportunities to capitalize on bear market rallies from now until then.

For now keep your cash on the sideline and wait for a massive panic sell-off before committing any money to the market. Investing in the current market can be compared to a job of an airline pilot - Months and months of boredom followed by shear moment of terror.