Banks, you need to study history. A new day is coming . . .

By
Managing Real Estate Broker with Winchester Real Estate Sales, Cornerstone Business Group Inc 0225086119
http://actvra.in/ySC

A simple understanding of history can prepare you for events and Bankhappens because history truly does repeat itself.  It may not be on the exact same time-line or span the same days and years, but it does repeat.  In the current economy, big  banks need to take a history lesson. 

The United States has had 39 recessions in its history.  Some of those recessions were mild, and some of them were deep and entered into depressions or panics.  The recession of 1907, and the recession of 1910-1912, led to widespread panics and ultimately resulted in the creation of the Fed.

SafeThe recession of 1920-1921 led into depression and then prosperity and the roaring 20s. The recession of 1929 spawned the Great Depression of 1929-1933.  The recession of 1953 was followed by one of biggest building booms in US history.  The recession of 1973-1975 led to stagflation until a second dip into recession followed in 1980-1982.  Ironically, one of the greatest financial booms in US history followed that recession.

There is a great lesson in the aftermath of these recessions.  For those of us who work with banks on a regular basis we've learned a few things through these times.  Banks need to learn the same lessons.

  • No bank is too big to fail, but many are too big to succeed.Down Arrow
  • If you treat your clients poorly during a recession they will remember that during THE NEXT BOOM!  That guy that you harassed and hounded day in and day out will buy another house one day.  He might even be the next Bill Gates.  He will need a place to park his money.  It won't be you, and he will make sure his friends know how you treated him during the hard times.  He might even be a blogger with a global audience.
  • Every recession is eventually followed by a period of growth and Thumbs downupward mobility.  During those periods of upward mobility people will ask their friends where they bank and how they feel about their bank.  Those who were beat up by their bank during the recession will become your biggest adversaries during the boom years.  It will be their turn to be in the power seat.
  • If you worked well with your clients during the down-times, your clients who struggled during the recession will be your greatest ally during the boom.
  • If you treat people well during all economic cycles, you will always have plenty of business.
  • If you don't treat people well during all economic cycles, no one will shed a tear if you fail. 
  • The realty is, recessions don't last forever, and if you want to be in business during the next boom, remember it's your customers who make you successful.  Without their money you are nothing.

This recession is likely to be behind us in 2013 or 2014.  Will you also be behind us?  It really is your choice.  Banks, you need to study history.  A new day is coming . . .

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Rainmaker
184,419
Sheila Moran
RE/MAX Access (Garden Ridge, San Antonio, New Braunfels) - New Braunfels, TX
SanAntonioSheila.com, RE/MAX Access, 210-32

Mike,

 

History is such a great resource to also remind everyone that

 

This too shall pass!

 

Enjoyed this post!

Apr 16, 2012 05:25 PM #3
Rainmaker
799,171
Mike Cooper
Winchester Real Estate Sales, Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Pro

That is what has kept me sane the past 4 years, Sheila.  8-)

Apr 16, 2012 05:27 PM #4
Rainmaker
428,538
Jim Patton
Century 21 M&M - 209-633-2839 - Turlock, CA
Realtor - Stanislaus & Merced county Realtor.

Very well put Mike.  Not only does this apply to the big banks but to us as Realtors too.   Thanks for sharing.

Apr 16, 2012 05:39 PM #5
Rainmaker
799,171
Mike Cooper
Winchester Real Estate Sales, Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Pro

Absolutely, Jim.  There were a few Realtors around here that were always to busy to deal with the lessor masses.  Now, they're selling REOs for Scumbag REO and they're glad to get them.  

Apr 16, 2012 05:42 PM #6
Rainmaker
524,563
Jill Sackler
Charles Rutenberg Realty Inc. "Said and Done!" - Merrick, NY
Long Island's South Shore Real Estate Agent

I can't wait for the next big boom. A blogger with a global audience? Was this autobiographical?

Apr 16, 2012 05:47 PM #7
Rainmaker
799,171
Mike Cooper
Winchester Real Estate Sales, Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Pro

It might just be, Jill.  I do use my blog like a scalpel and like a hammer.  It works either way.  8-)

Apr 16, 2012 06:11 PM #8
Rainer
229,086
Linda Urbick
Keller Williams Realty - San Ramon, CA
San Ramon, CA Homes for Sale - 925.415.3046

Mike - thank you for the recap. As noted based on history - this too shall pass and we will be onto the next phase of the economy.

Apr 16, 2012 06:37 PM #9
Rainmaker
273,856
Rebekah Radice
Imagine WOW! Digital Marketing Agency - Burbank, CA
Social Media Marketing, Coaching & Training

I couldn't agree more Mike! Banks are never too big to fail, but they sure are too arrogant to take care of the customers that got them to where they are. It's been such an unfortunate situation to watch the last 6-7 years unfold but I can only hope the banks, and every single one of us, have learned from it.

Apr 16, 2012 06:44 PM #10
Rainmaker
799,171
Mike Cooper
Winchester Real Estate Sales, Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Pro

Absolutely, Linda.  I look forward to the next phase.

Rebekah, I can't think of a single thing that has changed the way I deal with my financial life more than the last four years.  In a weird way, it has been a tough love good thing.  Now, I'm more stable than ever.  Thanks for dropping by.

Apr 16, 2012 06:49 PM #11
Rainmaker
498,639
Cal Yoder
Keller Williams of Central PA East - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Thanks for your words Mike. Knowing, understanding and learning from history are very freeing happenings. I do believe that we will see an improving ecnoomy in the somewhat near future. It is also keeping me sane.

Cal

Apr 16, 2012 07:38 PM #12
Rainmaker
799,171
Mike Cooper
Winchester Real Estate Sales, Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Pro

It does keep me sane too, Cal.  Thanks for dropping by!!

Apr 16, 2012 07:50 PM #13
Rainmaker
1,068,554
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Mike.  Guess what is going to follow after this recession?  Another boom.

Apr 17, 2012 02:52 AM #14
Rainmaker
799,171
Mike Cooper
Winchester Real Estate Sales, Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Pro

I'm ready, Conrad.  Aren't you?

Apr 17, 2012 03:52 AM #15
Rainmaker
531,793
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Mike, your point is well taken about treating people well and then in spite of the economy you will have business.

Apr 17, 2012 04:03 AM #16
Rainmaker
799,171
Mike Cooper
Winchester Real Estate Sales, Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Pro

Thanks, David.  Have a great Virginia day!

Apr 17, 2012 04:18 AM #17
Ambassador
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

NO BANK IS TOO BIG TO FAIL??  HA!! 

 

"No bank is too big to fail"

 

HA!  Just goes to show that living in the past and relying on history as a teacher no longer works.

 

Once the U.S. Congress became dominated by politicians with their hands out, banks purchased legislation that demanded that a few banks ARE, INDEED, TO BIG TO FAIL. 

 

For big  banks today, it's not what you do that determines success or failure.  It's how much you can pay for favorable legislation or a favorable resolution to being caught engaging in illegalities.  

 

The past is no long prologue.  The past is now a postscript, an epilogue, often only a footnote.

 

Apr 17, 2012 04:46 AM #18
Rainmaker
799,171
Mike Cooper
Winchester Real Estate Sales, Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Pro

Sad, but true, Lenn.

Apr 17, 2012 05:09 AM #19
Rainmaker
1,266,872
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Mike I have said for sometimes big banks are killing themselves and they cannot see it.  I bank with a small regional bank and am very happy.  They answer the phone!

Apr 17, 2012 08:54 PM #20
Rainmaker
799,171
Mike Cooper
Winchester Real Estate Sales, Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Pro

It almost seems like they have a death wish, doesn't it, Gene?  You can't fix stupid.  

Apr 18, 2012 03:18 AM #21
Rainmaker
1,068,554
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

I am:)

Apr 18, 2012 03:36 AM #22
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Rainmaker
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Mike Cooper

Your Winchester, VA Real Estate Pro
Winchester has a place for you! Call me.
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