More Bad News Out Of JPMorgan About The State Of Housing And The Boycott Of The Rigged Market
Another day, another preannouncement by a major bank confirming that the housing bubble has not only popped but that traditional bank activity, namely the lending of mortgage loans to consumers - who aren't borrowing not because they have no access to the loans but because real estate prices pushed up by institutional investors who don't need mortgage loans, are simply idiotic - is dead and buried.
- JPMORGAN SAYS FOR CONSUMER & COMMUNITY BANKING HIGHER LEVELS OF MORTGAGE INTEREST RATES ARE EXPECTED TO CONTINUE TO HAVE A NEGATIVE IMPACT ON VOLUMES
- JPMORGAN SAYS EXPECT PRETAX PRODUCTION LOSS OF $100-$150 MILLION IN 2Q14 AND PRETAX MARGINS TO BE NEGATIVE IN 2H14 FOR MORTGAGE BANKING
- JPMORGAN SAYS EXPECT NET SERVICING REVENUE OF $600-$650 MILLION IN 2Q14 AND DECLINING BY APPROXIMATELY 10% PER QUARTER FOR H2 FOR MORTGAGE BANKING
- JPMORGAN CHASE & CO EXPECT SECURITIES SERVICES REVENUE TO INCREASE IN 2Q14 BY APPROXIMATELY $100 MILLION COMPARED TO 1Q14
- JPMORGAN SAYS MARKETS REVENUE TO DATE REFLECT A CONTINUED CHALLENGING ENVIRONMENT AND LOWER CLIENT ACTIVITY LEVELS
That said, we can't wait for the Fed to continues its disinformation campaign reporting that week after week loans issued by US banks are increasing.
But the punchline:
Based on Markets revenue results to date, which reflect a continued challenging environment and lower client activity levels, expect 2Q14 Markets revenue to be down approximately 20%+/- versus 2Q13.
With recoveries like these, who needs depressions? As for JPM's latest disappointment, just blame it on the 4 inches of rain in New York this week.
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