tshk1221

Wells Fargo: Being Bearish Paid Today

Dear traferboy,

You're absolutely correct.

However, the problem is no one knows how bad their loan assets are because the reale state and credit bubbles were so severe for the last 5 years. I know this well because I have been in the lending industry for the last 10 years. Man, you can say that the last 5 years were the craziest lending environment you can imagine in US history. Loans, loans and loans! Banks just poured in their capital to produce loans in unbelievable quantities. If banks kept their loan asset quality, they will survive. If not, they will die during this crisis. But, I learnt a very important lesson: Know that when banks report record-breaking earnings and profits, credit bubble and real estate market / stock market crash are the ones coming next. We'd better prepare ourselves to sell our stocks when banks report those record-breaking earnings!


On Dec 01 06:40 PM traderboy wrote:

> On the same token if the banks clean up their mess soon then
> suddenly they start making LOT $$$ than u think.
>
> They are already increasing the credit card fees, interest
> to unprecedented levels.
>
> By the time people realize they may shot up to the roof.
> (Not in a day or week or month though :(- )
>
>