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The Average Layman Wonders What So Special About Banks That Pros Want To Buy Their Stock?
On Tuesday, 12 April 2011 I wrote "Weakening Revenue Streams in US Banks Will Make Them More Susceptible To Contingent Risks". Today, CNBC runs this on thier front page today... Big Banks Forced to Cut Back Again as Economy Weakens: Battered by a weak economy, the nation’s biggest banks are cutting jobs, consolidating businesses and scrambling for new sources of income.
I believed this to be inevitable for we are still nowhere near a true economic recovery. The main source of lending for most US banks, the housing industry, is in a veritable depression. See Reggie Middleton's Real Estate Recap: As I Have Clearly Illustrated, It's a Real Estate Depression!!! and The Residential Real Estate Week in Review, or I Told You We're In A Real Estate Depression. Even the news today points to more of the same... Pending Home Sales Fall 1.3 Percent in July from June.
Big companies are firiing freely again while the main engine of US employment, the small business, exhibits a slowing in hiring in August as wages dip. The balance sheet draw is evident as some banks dump assets at firesale prices.... years after the alleged fire has been put out, while other banks simply refuse to come clearn with the truth... Dexia Sets A $5.1bn Provision For Loss On Trying To Sell The Same Residential Real Estate Assets Upon Which JP Morgan Has Slashed Provisions 83% to $1.2bn from $7.0bn
Needless to say, it is nigh time to start to take another look at the big US bank. Hey, what's that smell? OhThere's Something Fishy at the House of Morgan 
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Reggie,
You also seem to forget to add that only RBS wrote down the risk on their greek exposure and none of the other banks did.
Also, their real estate writedowns in the US AND the EU have not been done.
The EU for example seems to have a drop in real estate values of 4% this year and none of the banks took that loss.
Also, real estate prices only now start to drop, so we are still at the beginning of your famous tree of life circle that I like so much :)
Greets,
SD.
There are some interesting points in time therein article but I don’t know if I see all of them heart to middle . There is some validity but I will take hold judgement until I look into it further. Good article , thanks and we want more! Added to FeedBurner also.
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There are some interesting points in time therein article but I don’t know if I see all of them heart to middle . There is some validity but I will take hold judgement until I look into it further. Good article , thanks and we want more! Added to FeedBurner also.
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Yo Reggie, signed up for a retail account last weekend. Great content, but the servers....my god, things are taking forever to load man.
This has nothing to do with anything but a complete public backstop of all losses -- as in, it goes on the backs of the public while they starve and the rich effectively start adding human meat to their menus.
Going long "especially the banks " is kissie kissie the white shoe boys club...cant get invited to the Hamptons if one is a bear. As for The ORACLE... his agenda is to keep all the layers of cover-up in place..everything he owns is actually BK as everything was built upon BORROWED MONEY .. rolled over rolled over rolled over...period. The perverbial pushing the cinder block up the hill. Reg you have been correcto-mundo many times and I see that this will be just another notch in you're pencil.
Reggie - "When you're long only, you only have to lose less than the next guy. You don't necessarily have to make any money. Remember that." I don't get it. If both you and the next guy lose different amounts of money, what's the point? Explanation?
It's not that we are tight-wads, its just that some of us are still in a hole from 2008 ~ 2009. If only I had only sold in 2007, and put it in Gold & Silver.
Reggie: "The new sheriff of Rock-Ridge"
Reggie: "The new sheriff of Rock-Ridge"
Reggie,
I like it when you hammer JP Morgan ...what a bunch of bankrupt cunts they are
And BTW I'm (at long last) signing up as a full (not day) subscriber to your BoomBoomBustBust (close?) Blog ...keep the air raid sirens going at fever pitch please, I like the sound, it calms me...and keep those profitable trading opportunities coming too, some of us have no qualms what-so-fuking-ever profiting nicely from these indebted over-leveraged bwankers suicides
Reggie,
Sorry but set up the account and no credit card, girlfriend has it, so couldn't complete... so it'll be tomorrow i promise without fail... 2 questions arise though, I've gone for the 'Retail investor' package:
1). does it gain me access to all/most of your trading tips?
2). do i get access to previous research?
PS. Love the hatchet job (precision guided blade) on Goldman Sucks... are you the first person in history to question this almighty parasites inability to trade profitably without the benefit of stiffing markets, stiffing its clients and stiffing the taxpayer???
Namely it's not a sharp cookie at all but a goofball gangster operation (like JP Morgan) ...you've stuck your neck out on that one but i've a feeling we all know who the turkey on the chopping block will be in the upcoming storm ...Lloyd Blankfein will look good stuffed on a platter
Girlfriend has credit card?? Not good.
she knows the PIN as well ..eekkk!!
Reggie says the pros are wrong; JPM closed at $37.48; today the 29th. of August. Well, a reasonable time line is a month; so lets give it a month and see if Reggie is wrong; or as he is saying; the market is wrong. By the way; the first rule of trading is; never, never argue with the market. Never.
Market is short form for " Low Volume High Frequency Eniac must close higher at all costs HAL 9000 TBTF price pumpers"
Its OK to Argue with 01010101010010001010010100000101010101010101010010101010101010101010101010101010001010101010101011010101010010101010101010010101010101001010101010100100 ect......
how do you mean, don't argue with the market?
the whole point of the market is to argue with it! You argue with it at tops saying you're delusionally optimistic and sell Short. You argue with it at bottoms saying you're delusionally pessimistic and go Long
...everything in-between you stay on for the ride waiting your stop to jump off
The simplist reason to buy is probably the reason: the dollar and real estate are so weak the financials are in the bargain bin. We all aren't Buffet...but we might be soon. Then again it might be too late already.
Whats so special about banks?
Dunno. Its like aXin what's so special about a case of inflamed hemerhoidal lesions... not sumthin you tawk about in polite company - though I'm sure it'd probably perk Buffit's interest!
Then again, they dont call him the Orifice of Omaha for nothin!
LOL!!!
just click the link richard "fishy at the house of morgan", it takes you to reggies most excellent site, although i cant bring myself to pay for his info, cos i am a tight wad heh, this detail is free!
Re "i am a tight wad"
Jewish or Scottish?
i think he's scewish
just too a look around some of the free resources i've got to work with:
looks like small -- but potentially substantial -- moves down in both GS and JPM right now.
you haven't let me down yet, my good man; sos i'm gonna turn from oil tonight and see what's shaking over at jmp.
might try another sector sweep like week before last (awesome call, BTW)
missed you last week; took me a long time to figure out why i was so wrong on the dollar -- currencies are a bitch.
i chickened out today, Reginald.
couldn't see that golden ray streaming through...nothing stood out sayin, 'hey, they forgot bout me; i'm behavin rationally today'
i guess one could say gold followed something of a twisted logic (if we're to play along in this farce), insofar as it at least responded to equity...but on fucking vapor volume?
once again, i'm gonna go rootin around your site tonight -- okay, looks like i'll start back somewheres round march...look for clues, pick up a scent somewhere.
i'm eyeballin oil right now. i agree about the banks; but i feel that if something's gotta give, it'll be oil rather than banks -- at least at this point.
what i wouldn't give for a bloomberg terminal right now.
reggie
where is the rest of your artical, it seems a bit short