The collapse of the housing market, and the increase in mortgage delinquencies and home foreclosures, coupled with the credit crisis have all led to a dramatic increase in bank failures over the past few years. When banks fail, the FDIC is appointed as receiver. Depositors are protected up to the FDIC insurance limit.

As the economy weakens, the number of bank failures keeps rising. On Friday 11/21, the FDIC seized three banks, bringing the number of bank failures in the U.S. to 21.

Most investors are afraid they will wake up next Monday morning with a worthless financial stock, whose deposits have been sold to another institution.

What should investors do when the banks are crumbling around them? Louis Navellier of the Navellier Growth Blog, tackles the "what" and "why" of bank failures, and reminds investors how to stay safe in this economy.