PastTense

More Trouble Brewing for Banking Sector?

The trouble the banking sector has is the continuing massive losses in residential mortgages, commercial real estate, credit card debt, etc. While they don't have to recognize these losses because of accounting gimmicks they are very real. See Calculated Risk:
www.calculatedriskblog.../

Why the Federal Reserve Bank Must Maintain Its Independence

All you have to do is look at the Fed's past actions and it is very clear that the Fed is NOT independent, but is totally controlled by the big banks. There is an old cliche: what's good for General Motors is good for the country. Likewise the Fed believes that what's good for the big banks is good for the country. Whether you look at the Fed's failure to deal with the housing bubble or the failure of the Fed to prevent the massive risk-taking by the banks which had near-catastrophic consequences (in both cases instead the Fed bowed to banking pressures), it should be clear that this is not true.

First Signs of a Two-Tiered Banking Structure Emerge

There is always normal turnover in firms and neither this post or the post referenced do more than give the names of a few people who happen to be leaving. To be persuasive more solid data is needed.

Obama’s Financial Regulation Proposal: The Devil Is in the Details

Some of us have alternative ideas--like going back to the separation of commercial banking from investment banking.

Banking Sector: A More Balanced View Is Needed

I think that you have a bizarre view if you think in the long run the federal government is going to turn a profit from the banking crisis.

There have always been vast numbers of irresponsible potential borrowers wanting to borrow money. It used to universally accepted that it was the function of the banker to not loan these people money.

Likewise the function of the federal government is supposed to be to protect the federal treasury--not to be a nanny to protect the banker from himself.

Did GM Really Bring Down the Dow?

And the followup question (considering the oddball weighting of its components) is why anyone pays any attention to the Dow at all?

Warrant Sales Could Cost U.S. $10B

The treasury should simply auction these warrants off immediately. That way it would get a fair value. Lots of us on Seeking Alpha foresee the banks as having major problems in the future and thus the warrants going down in value.

30 Investors Bound to Lose Big on GM

Look at the biggest one on your list: State Street Global Advisors: Will they lose anything? I doubt it. Instead the hundreds of thousands of holders of the DIA (Dow Diamond ETF) and other ETFs they offer will be the ones to lose. Similarly for the other mutual fund or ETF groups on the list.

12 Stocks in Focus for the Obama Era

"Basic materials. These stocks will benefit from all of the new construction initiatives that have been put forth. Caterpillar (CAT) and US Steel (X) could do well."

However private construction is bigger than public construction. And what does everyone expect in the way of new office buildings, for example ? A massive decline.


"Healthcare.. These companies have already agreed to price-cuts which could affect profitability."

Nonsense; it was simply some trade associations making meaningless PR statements.


"Big Oil. Look out Exxon (XOM) and Chevron (CVX)."

Oil is an international market. Peak oil is happening and the Chinese all want to get a car. While it will take a couple years for oil to recover, after that prices will explode.

Credit Cards: Do the Banks Own the Senate?

The "beleaguered consumer" would be much better off closing his credit card accounts rather than pay heavy interest each month (while I charge as high a percentage of purchases as possible, I do it to get a 1% cash rebate and consumer protection features against unscrupulous merchants--and pay the bill off in full every month).

Bank Stocks: What Could Still Go Wrong

While I agree with your listing of problems, there is apparently no limit to the amount the President, Congress, Fed, Treasury are willing to spend to bail them out.

Credit Card Losses Are the New Bad Mortgages

I used to be under the impression that AMEX had higher standards than the Visa/MC crowd, so the data about similar charge-off rates is surprising. Was I wrong about this, or did AMEX adopt lower standards in the last few years....?

Nothing Suggests We're Anywhere Near the Bottom

"However, if you look at the graph, you will see that every year there is a similar tick upward in consumption, although the exact date of it does vary by a month or two.

Why? It's called Christmas!"

Huh? Christmas has always been in December; it doesn't vary by a month or two; nor does the associated Christmas spending which mostly runs from Thanksgiving to Christmas.

For Bankers, Another Stress Test

"I haven’t checked who first broke the news, but Friedman’s resignation was of course the major development of yesterday."

Why? These people running the Fed, the Treasury and Goldman Sachs are peas in a pod. It doesn't matter which one is supposedly in charge.

Elephant in the Stress Test Room: Commercial Real Estate Loans

The problem is not just that a lot of banks have a lot of money in commercial real estate loans; the problem is that they also have a huge amount of money in underwater residential mortgages, consumer loans to people who have lost their jobs, business loans to businesses which are losing money...