Jason Rines (iThinkBig)

The Banker: Not a Clue

You commented a solution to a market problem. Best comment I have seen this week here at SA. I hope you are connected politically to advise. I bet someone reading your comment just decided to write a business plan :) Damn, too bad I am in Health and Higher Ed already...


On Jan 07 09:11 AM john s. gordon wrote:

> dergman - banks hoarding cash, not making loans to qualified borrowers,
> they did this in the credit crunch of 1989, result was creation of
> a loan brokerage industry connecting people with cash to business
> firms who needed it, disintermediating the banks. situation gradually
> straightened itself out/

Banking's Ins and Outs: $188 Billion from Bailout, $1.6 Billion to Execs

Because when a culture has enough of the basics in life we outsource the jobs we do not wish to do ourselves. The middle man who produces the least gets the best compensation for a time, until the house of cards collapses and the producer works very hard for a time but then reaps the rewards. Such cycles shall continue until mankind gets much better and applies genetic engineering.


On Dec 23 05:50 PM M-P wrote:

> I believe in capitalism and the implied pay for performance contract,
> but I have trouble with the bank execs receiving this kind of $ when
> they are being subsidized by the taxpayer because they took undue
> risk. Why don't we look at a clawback provision whereby we take back
> $ that was ill-gotten via reckless leverage and risk. Unfortunately,
> the seeds of failure were planted a number of years ago and we are
> now cleaning up the mess. Why do we reward malfeasance? Why do we
> subsidize recklessness? Why do we pay for incompetence?

Barron's Goes Bullish on Banks, Again

Dixie and Kunst provide the best comments on this article in my humble opinion. For Dixie, he said:

'These "main street banks" understand the local commercial customer better than their "wall street" counterparts.
Stock valuations in this sector may well increase 50% to 100% within the next 2 years. Discover the babies that have been tossed out with the proverbial bath water.'

Kunst mentions when big oil overseas starts buying banks then bottom has been reached. One nuance Kunst, don't think this will just be overseas, big domestic private equity tycoons would also buy. And I am not talking about Paulson & Bernanke making weekend deals either, that is not a bottom, that is desperation to prevent systemic collapse.

Citi + Bank of America Losses = Rest of U.S. Banks Value

I like Hoping Justice's point: Bad management. Bad management created marked-to-market, credit swap and deravatives vaporware and the monolines turned a blind eye. Same with government. As investors, don't we pay close attention to who is running the ship?