Gary A

Financial Crisis: Treating the Symptoms Isn't Enough

I think it is past time that someone told us who ran these money markets. I think it was a set up, a planned extortion. But until we find out who made this run we won't know will we?

How Banks Actually Make More from Bad Credit

Walk away from your credit cards. Spank these banks. They are usurious and they are ripping off the average Joe, first with ponzi housing, then with bailouts and then with no money down commercial real estate. So credit cards are part of the big picture. Walk away. dontpaycreditcards.com


On Dec 02 12:53 AM William Legrand wrote:

> No matter how a bank stacks the credit card deck with high interest
> rates and late fees, individual cardholders are fully responsible
> for accruing credit card debt in the first place. In general, there's
> a simple solution for the cardholder to stack the deck against the
> bank: Pay off the balance in full every month. That way it makes
> no difference what the interest rate and late fees are, because the
> cardholder never pays them! Better yet, paying off in full means
> the cardholder gets an interest free loan while their money can keep
> earning interest in a bank account. Yes, this approach requires
> discipline and responsible behavior, being careful to avoid the temptation
> to buy, buy, buy on impulse. But once the cardholder gets into the
> habit of paying off that balance every month and realizes how much
> farther their income goes, it becomes an addictive and very rewarding
> habit.

The FSB's Big, Bad 30

Citibank was not on the original list published by Reuters.

Meredith Whitney vs. John Paulson on BofA: They're Both Wrong

BAC has exposure to Dubai.

Wells Fargo, JPMorgan and Bank of America: Stock Prices Can Double

New info Amit. BAC tier one capital is 5.8. New Basel BIS requirements will be 8 percent. And this doesn't even take into account a downturn that could take tier 2 and 3 down.

Still as confident? BAC was one of the worst capitalized of the 45 largest banks in the world.


On Nov 24 12:03 PM Amit Shah wrote:

> Too many dumb comments for me to respond. Buffett invests when he
> thinks companies are cheap, not to be an American patriot. Banks
> reserves for losses are high because the peak of the credit cycle
> will be in 2010. WFC and JPM took writedowns immediately upon acquiring
> Wachovia and Washington Mutual.
>
> I would bet with Paulson and Buffett over any of you fools. The economy
> is growing (although at a slow pace), interest rates are at a record
> low, banks are making tons of money on the steep yield curve, and
> the credit cycle will pass sometime in 2011. With unemployment at
> 10.2%, interest rates are not going to increase anytime soon.
>
> Also, credit cycles do eventually turn, the time to short financials
> was last year, shorting them now is just a complete stupidity. Wells
> Fargo's revenue is increasing in an environment where loan demand
> is down, which is very impressive.
>
> I am extremely confident the fundamentals are improving, not deteriorating.
> Banks are retaining earnings at the fastest pace, provisions for
> credit losses are extremely high, real estate prices have bottomed.

Big Surprise: Most Big Banks Lack Capital

The Bank of International Settlements allowed off balance sheet ponzi housing to reach US shores complements of their tool, the Federal Reserve private Bank. Now the BIS is increasing capital requirements and servicing of the national debt is increasing. We are more and more into debt to the bankers every day, and yet they allowed the ponzi.

Let the military of the United States surround the BIS and let US banks default on all the things the BIS and the Fed allowed them to do in the absense of sound underwriting. Jail the Fed and the BIS.

I doubt anything else will allow us to be any different than Japan.

Wells Fargo, JPMorgan and Bank of America: Stock Prices Can Double

It is all about the Bank of International Settlements and how harsh they want the capital requirements for American banks.

The international banking cartel makes money off of countries struggling with deflation. I could see them wanting the US to stay in deflation. We could choose not to spend like crazy though and thwart these banksters. But we probably will spend like Japan did.

John Paulson's Hedge Fund Position Updates

He won't be fine long term. JPM would prey on Citibank like a vulture on a carcass if conditions are right. The Fed isn't talking about dismantling the biggest banks for nothing. If the economy sinks more, which I believe the Fed knows will happen, these banks will be zombie like for years. And maybe worse. There are a lot better stocks to invest in,IMO.

On Nov 15 10:51 AM bobbybutte wrote:

> why would paulson short it?
>
> He knows the government has sucha large stake that he feels it will
> be fine long term

Time for the U.S. Economy to Reindustrialize

Well if the dollar is devalued enough we can have factories move here. Is that the plan? Problem is that assets are rising too fast if that happens, and it will still be too expensive to do business with 6 dollar gas. Maybe rail will be the only transport and maybe that is why Buffett decided to buy his big railroad.

If the plan is 6 dollar gas and a work force willing to work for minimum wage in a factory, the politicians who allow it will all be gone and continually voted out.

Analyzing the U.S.'s Four Largest Banks

Is the author saying that the banks will straighten their course? I don't see 20 percent down and old fashion lending coming back, do you, FWI?


On Nov 08 09:24 AM fwi wrote:

> It is interesting that I read this well written article and drew
> the completely opposite conclusion. I believe that the banks will
> not straighten their course. They have already forgotten the lessons
> of just one year ago. They do not want to be in the lending/deposit
> business anymore because of the dreaded loan loss provisions.
>
> THey much rather make their money trading with the free discount
> window money they can access from the Fed by Pretending to be a bank
> holding company. And I am not just referring to Goldman Sachs.

Accounting for Losses at BofA and Fannie

What conspiracy are you talking about? How about the Robert Rubin, Fed conspiracy to bring off balance sheet banking to the shores of the United States? That is a conspiracy. How about the BIS looking the other way when off balance sheet banking was allowed? That is a conspiracy.

How about raiding the treasury of the United States, by Paulson, Geithner, the Fed and Barney Frank? That is a conspiracy.

How about not reigning in the too big to fail banks with regulation? That appears to be the newest conspiracy.

How about protecting the hedge fund crony bondholders of Larry Summers with Barney's weak bill that pays the creditors and stuffs the taxpayers? That is a conspiracy in progress.

So, please tell me what conspiracy don't you believe in here?


On Nov 06 08:24 PM 7footMoose wrote:

> Mr Hempton is a thoughtful analyst but misses the point. The historic
> loan losses experienced by the bank coupled with the historic loan
> losses experienced by the entire financial industry set the tone
> for expected loan losses. This in turn allows a bank to establish
> a loan loss reserve, which is then reviewed by management, the outside
> auditors and the federal examiners. The concurrence of these parties
> is essential to the process. Historically it has been the Feds who
> have insisted that the banks not salt away excess reserves for the
> future while understating current period taxable income. The idea
> that this is an arbitrary decision by the banks in an effort to hide
> potential losses only holds water if you are a hard core conspirascist
> convinced that all parties are complicit and involved. There are
> a lot of dumbbells out there but the conspiracy theory does not hold.

Accounting for Losses at BofA and Fannie

Yeah just wait till the new bank capital requirements hit. And hit they will. I would suggest that the banks are not lending that the big banks are not lending. So if they are so good for the economy, er, well, no, they are good for the bond market. They get bailouts, and they buy the sorry bonds of an over extended government. That is their only useful purpose right now.

They won't help main street. They don't have to.


On Nov 06 02:50 PM bbro wrote:

> this is garbage...BAC has 914 billion in loans....50 to 80 billion
> quarterly
> loss rate is absurd...No facts to substantiate...This fans the ignorance
> that prevails on some blogs regarding accrual accounting
> versus fair value accounting..BAC is nowhere nears like a zombie
>
> bank.There are dozens out and they are populated in the small banks
>
> undercapitalized,low loan loss reserves,too high chargeoff rate,
> and
> most importantly too low preprovision earnings....

Consumer Credit Decline Continues

What I don't understand is how credit decline can be falling, tax receipts in states can be falling, yet spending remains flat? I would like someone to look into those numbers because they must be manipulated. It doesn't all seem to add up.

Underperforming Banks: A Bad Sign for the Markets?

I personally believe that we have many similarities to Japan. We subsidize the banks like they do. We are starting to spend less, like they do. We are avoiding formation of families, like they do.

Are we going to be like Japan? It is quite possible.

Is Obama Forcing Citigroup to Downsize?

Could it be that the Fed is realizing that the populace wants it to go back to Europe and is trying to act like the good guy. But the Fed is not the good guy. Acting on orders from the Bank of International Settlements, the Fed allowed off balance sheet banking to take hold based on the 1997 Basel 2 accords. This fraud, thanks to the internet, is being exposed and pressure is mounting for the jobs of politicians who don't do something to stop these big banks.

I would suggest that ultimately, the people will rebel against these banks by walking away from all manner of loans. They will humble the international banking system. But after this, perhaps it will be difficult for the populace of one country to control the banks.

What I am saying is that the US citizen has the banks and the world economy in his hands. He can stop wanting loans and stop buying at the retail store. Perhaps the Fed is more afraid of backlash from the too big to ignore American consumer who has been riled up to never trust banks again.

We will see if the Fed will learn if this Basel 2 provocation was a big mistake for them.


On Oct 27 08:31 PM Albertarocks wrote:

> No matter what the future holds for Citi, on thing is absolutely
> certain in my humble opinion. Obama isn't forcing anything. He
> doesn't have the power to do squat with Citi, but he'll be blamed
> for whatever happens. It's the owners of the FED who will determine
> the fate of Citi, not Obama. He's a figurehead and I suspect history
> will eventually show... a "fallguy".
>
> I say that with all respect. I'm not being facetious. It's just
> the truth.