Toeser

5 Reasons Bank Shareholders Will Take a Hit

The market can remain illogical longer than you can remain solvent.

You are right about the banks. You may even be right about the market, but only time will tell. I hate mania markets because I find it hard to pull the plug on logic. Many of the big banks actually lost a ton of money last quarter, but reported big profits. Hardly a reason to be buying, but people are.

Why Banks Want to Return TARP Money

Overall bank lending is up something like 3-4% over the past 12 months, down from an annual growth rate of 10-12% in the previous couple of years.

If you have healthy GNP growth of 3-4%, then a growth rate in lending above that number means everyone is going more into debt. Duhhh! Hello government. We don't want to return to a 10-12% growth rate in lending, that's what got us here.