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Mike Mayo's Seven Deadly Sins of Banking

"What's Really Behind the Obama/Geitner Bailout Plan"

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FLASHROB

Mike Mayo's Seven Deadly Sins of Banking

1. we're losing WELL OVER 500,000 jobs per month - and they ain't Walmart jobs.
...like myself the average Credit Card User probably charges over $1000. per month...do the arithmetic...that's 1/2 billion dollars LESS PER MONTH to the Credit Card companies in lost revs. Add to that, good odds of many of these losing their jobs defaulting and declaring bankruptcy (I would estimate most of these people have multiple credit cards with 10,000 or more owed...throw that in...and you have 5 BILLION MORE IN LOSSES PER MONTH to the Credit Card companies and BANKING PARTNERS....)

2. All Obama's plans to FLOOD THE BANKS WITH CREDIT LIQUIDITY mean little...AS THESE CONSUMERS ARE TAPPED OUT CREDIT-WISE and WILL NOT BE ABLE TO TAKE ADVANTAGE OF THE INCREASED LOW RATE CREDIT. No, good job, equals LOSS OF CREDIT!

3. Freeing up credit liquidity ONLY KEEPS THE FEW DEEMED CREDIT WORTHY...mostly small biz...to keep operating...the PROBLEM IS: DECLINING CUSTOMERS...so the small biz can stay open...but their fighting a CONTINUALLY DECLINING AND LOSING BATTLE...as less biz comes in from consumers who NO LONGER HAVE CREDIT....

IS THERE SOMETHING YOU DON'T SEE IN THIS PICTURE... I would love to be wrong...but I'm just using "common sense" and some fundamentals...

where is the BANKS future rev stream...SHOWING OPERATING PROFITS without counting CONTINUALLY DECLINING ASSETS, which are exceeding those supposed "operating profits" is ridiculous... the banks as well as most small biz and retail WILL CONTINUE TO DECLINE...until JOBS AND THE CONSUMER are

BACK IN THE PICTURE in a positive way... no plan I've heard of, so far, CAN REFLATE CONSUMER SPENDING...

Obama is much too focused on plans that DON'T ADDRESS IMMEDIATE JOB LOSS...

I have suggested an immediate 50% 2008 tax refund to ALL INDIVIDUALS to JUMPSTART THE CONSUMER ECONOMY...thereby forestalling further JOB LOSSES...

the banks ARE A SEPARATE ISSUE...and with "mark to mkt" modification should not have to go bankrupt...(they still hold little promise as investment vehicles, as only a "super recovery" (unlikely) could restore them in my opinion....)

Obama should be focused on PROPPING UP THE CONSUMER not wasting TAX DOLLARS ON BIG BANKS...

most peoples local banks ARE IN MUCH BETTER SHAPE...and gov money can be funneled THRU THEM for BUILDING/INFRASTRUCTURE projects...

who really NEEDS A "CITI!"

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