Largest Banking Branch opening boom I ever seen leads to bust!

Over the past few years, all around Northern New Jersey we have seen banks being built. I suppose it is the same else where. So many Banks, it leads you to believe, how we lived without them. Population has not gone up much to create a greater demand, so there must be another reason. I have said over and over, every time something booms so much it leads to a bust. Then the financial crisis came. Were all these banks being built, showing the disease that the banks have?

Let's try some ideas.

They wanted to grow to get market share and not be left out.

This is a reasonable idea.

They wanted to grow to create a bigger critical mass to sell at a premium to a bigger suitor.

Possible for upstart and smaller banks.

They wanted to grow to be too big to buy out.

Possible for bigger banks.

They wanted more deposits desperately, because they learned how to leverage them up to create big profits and bonuses etc., using securitization and derivatives.

Very likely, deposits are king and they wanted them.

Was it because they could grow and everything seemed great to grow.

This is also possible, sometimes things follow the obvious.

Nevertheless, It was and is unusual and I intend to ask some banking executive what they think was and is the reason.

I feel that there is a correlation here between optimism and the reality of the situation. While banks thought things were good, they were leading to the worst times in almost a century. Why these Bankers were's paid so much money to be wrong, I could not tell you?

What do you think?

Richard

View my new homes for sale and other things.

Paramus NJ sales report for 1/08- 8/08

Paramus sales report for January - August 2008 compared with January -August 2007.

There were 124 sales in 2008 period verses 205 in 2007. The sales volume for Jan-Aug. 2007 was $78,369,735 verses $138,921,227 in 2008 period. These figures are derived from the Bergen County sale data. The sales are for residential properties including condominiums. This does not include commercial sales.

To view actual closed sales data for Paramus 2008

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Alpine, Bergen County New Jersey Real Estate sales:

report for the first 3 quarters of 2008. There was 16 sales closed for a total $48,415,500 with an average sales price of $3,025,968.75. This compares with the first 3 quarters of 2007 there were 21 sales closed, for a total of $78,747,000.00 with an average sales price of $3,749,857.14. Average sale price has declined by just over 19%. This is has no direct relationship to actual changes in value on a property by property basis.

The 2008 sales may be revised upward as further recordings may be available. Information deemed reliable but not guaranteed, reported by NJMLS off the Bergen County Recording office.

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New home Upper Saddle River Ceiling design and Art

These are pictures of ceiling art, as we call it. This double diamond coffer ceiling, with intermediate irregular octagon, is about 65% finished. It is in a new home, we are building in Upper Sadddle River New Jersey. The foyer great room are about 60 + feet and the ceiling work is that big. It is a very special piece of real estate. This is a truly custom home which I am building for a client and doing the interior design work. The house will have about 9000 square foot of living space. It will include a home theatre on the second floor and a open circlular stair case in the foyer. With many special features, I will show more of this home as it is completed.

View my new homes upper saddle river for sale

Richard

I visited a site of a new home we are going to build, Saddle River French Estates , and I made some new deer friends. They were just enjoying the real estate and the day, I really thought they were going to let me pet them. They acted like dogs waiting for me to throw a ball or something. The river was just behind them and they eventually ran across it. I see deer all the time, but these were very different and special. Prior to the video I took from my regular digital camera, they were on the ground just looking at me. Could you help me name them?

Richard