wadebloggs

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    • What Visa's IPO Means for This Market [view article]
      I don't see what's so sinister about JPM, et al cashing out some of their V shares. The banks are writing down $billions in CDOs etc all the time, so why wouldn't they take an easy step to raise cash to shore up their balance sheets? In that sense, it's not like Blackstone who shrewdly sold at the top of the market just because they could.
      As for the recession, we probably are in one, but who can see the present much less the future? I believe V is pretty well-insulated on the downside because people are swiping more for everyday things. I would also think that the buy ratings from research firms should come in a few weeks which could be another catalyst. Tough barriers to entry for competitors since member banks own V and wouldn't want to compete against themselves.
      The biggest risk is legal awards against V. Frankly, I am not sure how to assess that. I do know that if case against V ultimately makes it to SCOTUS, they'll win as this is the most pro-business bench ever (see last weeks NYT Mag cover story).
      Mar 26 03:17 PM
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