US banking system in Coma
The US banking system seems to be heading for a forced shakeout in coming months, as the new budget of Obama has earmarked a massive 750 billion dollars of further aid to the sinking system. The massive amount of new aid, in addition to the already spent 500 + billion dollars, is only indicative of the sorry state of the US banking system. With the US budget deficit already at 12% of the GDP, there is no further room for the government to provide any aid to any industry. Thus if the economic gloom continues, which looks highly probable, at least one or two big US banks could go under before the end of 2009, fear experts.