Teutonic Knight

Banking Sector: Worst Is Yet to Come

Reggie -

I concur with your views.

However, anything that is apt to come, as the final "crash" that you described above, would most likely behave like a woman's pregnancy. In other words, human folly reins, and akin to a baby being "due" it takes the full period of 10 months. The present idiotic march of the politicians and the Wall Street types will have to run its course.

Then it will be "due".

TK

The Coming Consequences of Banking Fraud

Mr. Kim's article is a rare gem and one of the best I have come across in my experience with SA. He is able to articulate the subject matter eloquently owing of course to his intellect, but more importantly to his independence.

The ranks of our bureaucrats by nature inherently attract folks who are risk-adverse, and our two mainstream parties are now fully entrenched.

Hope for America will have to come from good corporate citizenship - the late Mr. Batten who founded the Landmark Communications (The Weather Channel) exemplified such good corporate citizenship. A Third Political Party would have rise up most likely through independents who voters will elect en mass in the next round of elections.

TK

Five Reasons the Market Could Crash This Fall

This is it.

Recall last year June-July 2008 timeframe, the financial media was still saying "...no recession for this year..." and "...market is holding up and not capsizing...". (Of course, don't forget, they are paid to write, unlike SA folks here).

Early in 2008 I recall Benny was still saying after several of those emergency rate cuts, and the government's May Stimulus, "...Everything is going to be fine...". I hope people's memory are not short.

Now, of late, the Newsweek Magazine front cover declared that the "recession is over". This really worries me. Don't you see a correlation here with what I said earlier above? The fact they (like Sir Alan again, oh my gosh, not him again) could go out and say that it is over, it ain't over until it is over.

Street smart is what I always rely upon. In my neighborhood, which supposedly is very strong economically compared with most, my nearby supermarket is closing down, my nearby post office is cutting out after 5 services, those empty twin-tower new gleaming office buildings on the highway where every morning I pass by on my way to work are still hollow and dark, as it had been since late 2008, some folks I know at my church are still waiting for their bosses to call them to come back to work when work becomes available... the list goes on...

It doesn't look very "recovery" as yet. Maybe some folks at or around the Hill are living in Nirvana.

Five Reasons the Market Could Crash This Fall

doubleshortetf - - -

I like your #3 comment about "...Bears are early smart money...". It came across as a rare refreshing and astute remark.

The Bears in time will turn their double barrel shorting guns at the poor investors when they have finished up with the covering.

TK


On Aug 04 11:55 AM doubleshortetf wrote:

> Why we're near the very top:
>
> 1. Goes up on bad news/numbers from MSFT, AMZN, AXP's poor numbers
> results couple of weeks ago.
>
> 2. The investment gurus and analysts who got blind sided by last
> fall's fall and March low (boy weren't they pessimistic) are now
> in unison as bullish as ever, even with heck of a run since March.
>
>
> 3. Bears are hiding and appear to be capitulating on short covering.
> One can say the bears were "early" smart money.
>
> 4. Russell 2k has been on a tear. Speculation or back to halcyon
> days are back?
>
> 5. CNBC has special on Dow 9k and Cramer is pounding the table with
> buys and the lemming retail and professional investors are piling
> in. So much for the lows we had in Oct/Nov and March.
>
> 6. And even Barron's sounding bullish sans Abelson?
>
> 7. Historically Sept is the worst month followed by Oct. Just around
> the corner.
>
> My 2-cents is that we'll see 50% retracement to March low in Sept/Oct.

Bank Bailouts - Tell Me Again What the Point Was?

The bailout of the banks had never made any sense at all from the outset.

First of, there is so much excess capacity in banking. Second, it smelled fishy from the beginning when the most ardent advocators are bankers or former bankers themselves like the Benny and Hanky - kind of an old-boy network you scratch my back I scratch yours.

The most puzzling aftermath in retrospect is why our lady House Leader acted as she did as the crusading champion in passing the TARP bill. It boggles my mind when the Dems are, supposedly, with the folks below the Upper Classman - - A Mystery of the Mystery.

Anyone?

Why Bank Fees Need to Be Regulated

Lawrence Kamm in his1990 best-selling book "Real-World Engineering" called an Engineering Consultant an "Unemployable Engineer".

Today's banks are infested by money grabbers.

Giants such as MIT-educated engineer Alfred P. Sloan and Ken Olsen were technical and entrepreneurial movers and shakers. Pandit was an engineer-turned hedge fund manager, and Thain was an MIT graduate turned investment banker king, both headed to Wall Street to make a fast buck.

According to Kamm's definition of an engineer, I don't know what else to call these guys in this day and age, except to say that America is not quite once it was.

Oh, BTW, Kamm's book though published in the 1990's is still selling well but quite expensive; last I saw it costing about 60 bucks at Amazon for a paperback

Un-American Government Intervention

As many astute SA commenters pointed out, the norm of human behavior is for self-denial acts right up to the breaking point. So it is hardly surprising that the Obama regime did what it did - - - i.e., Business as usual - - - under King Barrie the Unready.

As things turned out the Supreme Court just doesn't look too supreme but much akin to a bunch of groveling nerds, and the Fed isn't as reserve as it sounds but exhibiting signs of madness in printing.

Yes, I concur with Market Sniper - things are most likely going the "other way".

Banks, Oligopolies and Ever-Rising Fees

To TraderMark -

Very interesting and discerning article. I like your backing it with numbers that are well-researched.

As I related elsewhere in SA, England's King John was an able and competent leader; however, he succumbed to the temptation of raising more and more taxes. And finally the noblemen had him cornered under a big tree to sign that historical document what was called the Magna Carta. That supposedly was what historians generally attribute as the beginning of representative and parliamentary government - a forerunner and model of all western civilizations to this date.

I suppose the bankers are the modern day noblemen given their upper-class heritage. Well, it seems to me that things are turned upside down this time around.

King Barrie (the Unready) had it that he nourished and cherished the noblemen to write a charter akin to a yoke around the necks of the common people.

What a mess!

Teutonic

Massive Bank Shareholder Dilution Ahead

Wasn't this obvious? Just look at what happend to Royal Bank of Scotland...

Why GM's Wagoner and Not BofA's Lewis?

User 382113,

Echoing your comment, and please excuse me in advance, I couldn't help dishing out one last snipe at the poor guy. (I solemnly declare this would be TK's last on him).

"georgie w" is a nice and decent fella that excelled in shaking hands and patting on shoulders of athletes at the 2008 Summer Olympics. He shined!

But as far as running this ultra superpower that had surpassed all other nations in the history of mankind as the United States, he was probably fit in the League of a Texan small town Sheriff.

I predict that many decades in the future scholars will look back and re-discover the case at hand. You know what? Surprise! They would have to thank such a wonderful set-up by the Republicans by precipitously ushering the U.S. into a key turning point in its history.

Teutonic

On Apr 03 10:38 AM User 382113 wrote:

> I think the same group that got george w. in power is responsible
> for the meltdown on wall st. It was a pre-meditated act that was
> within the
> common law framework. As an investor,I don't know what to believe
> under the current system. It would restore my confidence with a management
> change at the highest level. Mr. Wagner has been on the wrong track
> for years and Mr. Lewis should be replaced.
> If you want a perspective, refer to zietgeist.com and download
> addendum, no cost.

Why GM's Wagoner and Not BofA's Lewis?

hksche,

I guess Wagoner sensed it that they (the unions and other Detroiters, etc) won't like importing the Opel which was and still is a success. The good old NIH syndrome is alive and well, you'd know.

Teutonic

On Apr 02 05:12 PM hksche2000 wrote:

> Bruce Krasting, what planet are YOU living on?
> Read Elcopone's comment (v.s.). He's got it exactly right!
> Wagoner should have been fired by his Board y-e-a-r-s ago. He
> should/could have imported his own GM-Opel small cars (like the Astra)
> over here or -better!- manufactured it at Detroit, for starters.
> But he had to, but didn't hear his fellow Americans screaming for
> fuel efficient and, yes, smaller cars. The same Americans who bought
> the VW bug, not exactly a luxury limosine, like gang busters back
> then. You must listen to your customers (like VW, TOY et al do),
> or no bailout can ever save you.

Why GM's Wagoner and Not BofA's Lewis?

Bruce,

Clearly, in the case for GM, the BOD themselves are part of the problem.

So why would you think that they (BOD) would be able to do just what you recommended?

Appreciate your honest feedback in advance.

Teutonic


On Apr 03 07:10 AM Bruce Krasting wrote:

> Elcapone, My point is that we can not sack everyone who made a mistake.
> They did that in the French revolution. They just cut off their heads.
> I do not think the White house should be firing folks. I think Boards
> of directors should do that.

Why GM's Wagoner and Not BofA's Lewis?

Old boy network, it is so obvious that you even asked.

Credit Card Crunch: Creating a New Generation of Subprime

To Market Folly,

Thank you for a substantive and credible article that is so timely.

Yes, I would concur with your assessment. The next Time Bomb is ticking, and ticking fast. BTW, we have the issue, what is your solution?

teutonic

25 Companies That Lost America Nearly $1 Trillion

Mr. Hill,

I wish you could spare a moment to answer one dumb question. I came from Canada over 3 decades ago. Over there they "used to" have far fewer banks than the U.S. has., and still much fewer now.

Why do we have so many banks in the U.S.? 10,000 or so including the credit unions?

From your list, isn't it time to vastly consolidate most if not all of them as soon as possible and retrain the folks to other, in my opinion, more "productive" industries and services?

Thanks in advance.

teutonic