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Brian Moynihan (BAC) on why he sees another year that’s "a grind" in the economy:...

Brian Moynihan (BAC) on why he sees another year that’s "a grind" in the economy: “Never have middle-market and large companies been as profitable, had as much cash on their balance sheets, had as much availability on their lines, but they haven’t done anything with the money. They don’t feel the certainty of opportunity to make big investments.”
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Comments (12)
  • SlingWing9
    , contributor
    Comments (507) | Send Message
     
    They're waiting on the elections.
    20 Dec 2011, 11:57 AM Reply Like
  • Tailwind47
    , contributor
    Comments (3) | Send Message
     
    Wait for the elections? Whoever wins, will be corporate America's candidate... as always.
    20 Dec 2011, 10:57 PM Reply Like
  • Tom Armistead
    , contributor
    Comments (5724) | Send Message
     
    He who watches for wind will never sow: he who watches for rain will never reap.
    20 Dec 2011, 12:01 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    Capital strike.

     

    No bold, long term systematic tax restructuring on the table. Just 6 to 12 month gimmicks, every other couple months.

     

    That capital will remain on strike until then.
    20 Dec 2011, 12:15 PM Reply Like
  • wyostocks
    , contributor
    Comments (8910) | Send Message
     
    Given the uncertainty of our government, who can rationally make big investments for future growth?

     

    For example, the senate passes a TWO MONTH tax bill and then pats themselves on the back for a job well done and who knows what the EPA will propose tomorrow. And with this, you want long range planning?
    20 Dec 2011, 12:17 PM Reply Like
  • Financial Insights
    , contributor
    Comments (958) | Send Message
     
    Pats themselves on the back, and goes home for a much deserved vacation.
    20 Dec 2011, 04:37 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Boy, Brian certainly is the Master of the Obvious. That's probably the explanation of why his company is doing so well. He can only see what has been going on for nearly four years. Maybe next year he will figure out that BAC is a very sick puppy.
    20 Dec 2011, 12:17 PM Reply Like
  • jschroe36
    , contributor
    Comments (66) | Send Message
     
    What a bunch of bullshi+. THERE IS LITTLE TO NO DEMAND. The private sector is levered to his/her eyeballs in debt and is deveraging...a process that will take years to unwind. So spare me the bull about "uncertainty."
    20 Dec 2011, 12:44 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    The private sector has unwound most of its debt rather spectacularly over the last two years. So has the consumer. Most balance sheets are cash heavy in relation to both long term and short term debt.

     

    Its the public sector that is the problem now. Sovereign risk.

     

    So far, demand isn't too bad either.

     

    The problem are entitlements, public commitments and guarantees and pensions. In a word; government.
    20 Dec 2011, 04:38 PM Reply Like
  • jschroe36
    , contributor
    Comments (66) | Send Message
     
    "Household debt peaked at $13.9 trillion in mid-2008. After three years of repayments and write-offs, consumer obligations have been trimmed to $13.3 trillion, down just 4.6 percent from the high, according to the Fed. In the second quarter, the most recent data available, consumers made less progress whittling down their debt than in any quarter since the deleveraging began."

     

    I call bullshi+, Wyatt.
    20 Dec 2011, 05:39 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    600 billion dollars in such a short time isn't too shabby. If only government could be equally as efficient in disciplining its own obligations, which again is the point I already made.

     

    The bigger threat isn't mortgage restructuring. The late 80's S&L crisis taught us how quickly inventory can clear. The problem is that California can't fund its Cal-PERS. The problem is the states are loaded down with huge pension obligations that will never be paid without major haircuts. And the bigger problem is once we face that, to face the debt at the federal level with unsustainable obligations where promises get frontloaded onto stupid voters, but never ask how they'll get paid.

     

    The capital strike is a political, fiscal problem. Its not a structural problem. Not yet. We just don't have the politicians with enough courage to get on board with major, credible entitlement reform. Instead, we have politicians taking FDR and LBJs failures and expanding on them. Meanwhile Europe implodes for those very same reasons. This is the insanity, not consumer debt.

     

    I call your bullshit and raise you a couple patties.
    20 Dec 2011, 06:17 PM Reply Like
  • mngordoatyahoo
    , contributor
    Comments (110) | Send Message
     
    Did these same people have "certainty" in 2007 & 2008? Guess they did, 'cause the money flowed (into their pockets) even as they destroyed the economic future of America for at least a decade with their actions? Perhaps we ought return to the Middle Ages where public hangings taught life's hard lessons? Rewarding the culprits with millions and millions in "salary" for their stupidity just doesn't make sense.
    21 Dec 2011, 09:23 AM Reply Like
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