US banks continue to fail

From business times today.

No. of banks failed -
2009 to-date: 100
2008: 25
2003-2007: 10

When banks fail, other banks took over their accounts and customers. However, many a times the banks that took over will exercise greater caution towards the failed banks' customers, either refusing further credits, or make the loans more expensive.

This in turn, will result in a credit seize that we just experienced a few months back.

We can only hope that the credit seize had not been significant. Else, we will see more companies failing, and unemployment rate increasing. Not good at all.