The cause lies with Legislative neglect of banking industry laws.
Arizona banks dropped dramatically from $81.3 billion in assets in December 2005 to $12.3 billion in September 2011. The drop in $69 billion is strangling Arizona. When we lose the assets we also lose the local money multiplier effect which ranges from 5 to 10 times. Is it any wonder that Arizona now has the fifth highest poverty rate in the nation?
The effects are that small businesses lay off workers causing high unemployment, cuts in wages, increased bankruptcy, higher welfare rolls, lost homes, more homelessness, drained savings, reduced living standards, and psychological stress. Arizona gross domestic product (GDP) growth ranked 48th among the states for 2010. Read more at Arizona near last in GDP growth for 2010 | Phoenix Business Journal.
Read the cause in an article by Reporter Russ Wiles in the Arizona Republic – Banks’ recovery in Arizona is lagging. Then read my study on this site to see a further explanation of the cause and the solution.”