horrid

The Banks' Great Public Relations Hype

wELL, LET'S THINK HARD ABOUT THIS: WHY WOUlD A STOCK PRICE GO UP when there is dilution to the shares??
bIZARRO
Fundamntals biz trends are one thing, but shares are shares. And that is what the market is valuing.
So it really makes no sense and puts the rally in doubt to me.

How Refinancing Helps Bank Stocks

Ok, the key word is "appear"... You are assuming the banks will make it till the econmy recovers. But a lot can happen to make that bet very risky, including:
higher inflation, higher interest ratesd as Treasury struggles to fund our very large budget, a flat econmy, more layoffs, more deleveraGING, TIGHT CONSUMERS, COMMERCIAL REAL ESTATE CRISIS.... NEDD i GO ON?. It is a con game we all want to believe in. Does that expalin why the bank stocks are upppppp?

Fed Finds a Way to Use Stress Tests to Screw Bank Shareholders One More Time

So, if this atricle is valid, as I believe it is, why the h--- have the banks stocks been rallying and holding so strong, as if all the news is positive, when it aint????
They look over-valued to me-esp as the stess tests were bogus, and the banks have to dilute what equity there is to "improve" their equity/capital, pay back TARP, etc..
What am I missing here??????

Investors Snap Up New Bank Equity

I, too, am very surprised.
Who/what kinds of investors bought these offerings?? Are you in the for very long term? Aren't you worried about dilution? About further negative fundamentals? The economy? the high valuation here?
Why? What do they see? If you bought on an offering, please tell us why!

The Stress Tests: Designed to Help Banks Raise Capital

Interesting, but too bad you did not blow the whistle on this BEFORE the stress tests results came out.
These equity-issuing banks better be able to improve their businesses consistently from here, now that the gov is passing the burden of the bailout onto stockholders, cuz if the bank fundamentals disappoint, WATCH OUT- stocks will plummet once again.
Yes, gov has found a way to buy time, undoubtedly a good thing. We now need real productivity in the economy.
Are consumers also getting more confident? That would boost their spending habits a bit from these levels, but we need more deleveraging, and more jobs, based on business innovations, growth and investment .
Point is- gov is manipulating- what they say is not what is really going on. And the market will not stay fooled or be so willing to play forever.
At higher and higher stock prices, it becomes "where's the beef?"
I read these articles and posts to hear from those who are checking behind the curtain.
And to learn what I might be missing.
Bring on the good news, anyone!

A Bull Market That Few Are Buying

Is there really all that much cash on the sidelines after the buying behind this rally, and after all the carnage that took place last year in the financial and real estate markets, and all the job losses>>>?
How much buying power is there, psychology/confidence levels aside???

It's Time Banks Broke Up and Moved On

Yes, I see your point. Maybe the gov shd also be doing "stress to the system" tests- looking for impacts of failures, bankruptcies and receiverships!

Financial Stocks Are Ready for Their Pullback

Who bought up the banks stocks like that? Why? Does not make any sense.
It is the Fed? Or are the banks themselves repurchasing shares with their TARP money?
Ha Ha

Reading the Stress-Test Leaks

Who was buying the banks stocks yesterday??? Is the Fed buying these shares??? Ha Ha
I cannot come up with any good reason for this crazy rally yesterday. Please help me see the truth.

Despite Headlines to the Contrary, Bank Lending Still Healthy

Yuh, but what about the QUALITY of this credit??? It is good for economy to be more liquid, but I fear these and other loans will bite us in the butt soon...


On Apr 20 03:20 PM Cetin Hakimoglu wrote:

> Another great article. So much for the supposed 'credit crunch' and
> 'liquidity crisis'.

Data Not Supportive of Higher Stock Prices

I see a snap-back in the mortgage-related areas, in bank earnings for the first 3 quarters, but unless we have some improvement in consumer spending, some business investment resulting in innovations, some huge cost reductions, we aint gonna see much follow-thru. We could even snap right back down as the bank's have pressure on all their loans again due to at best flat demand for all their borrowers' products and services for a long while. Many lay-offs and bankruptcies are still in the works, yet to be announced.
Cost of credit- yes, it's very low now, but will get very high later as govs everywhere have to finance their deficits. Higher and higher taxes will also choke off the engine for growth.
YES-- we need GROWTH, real profits, real cash flow to REALLY recover. Everything else is kind of hocus-pocus.

Banker CEOs Lied to Congress

Let's not forget also that congress and the regulators are not doing their jobs or lie to get re-elected or to please their appointers.
The whole system is corrupt- the way things work now, the executives at all corps incl banks, their board and all the members of the government are not held accountable for their actions.
The boards are appointed by the execs and the shareholders have not say. The boards are supposed to be watchdogs- impossible.
The lobbyists represent special interests who support the politicoes and pay for their elections.
Where will it stop?
It is not a question of capitalism, free markets, socialism, regulationism...
Right now our system is NONE of these.
We need a system that motivates (where are you game theory economists?) and holds those in power accountable to the shareholders and the voters.

Wells Fargo: John Stumpf's Letter to Shareholders Is a Must-Read

I have not seen the Annual Report- can you separate out Wachovia's messes (pick a pay mortgages and a Big Wall St style division) from Wells Fargo's?
Wells does manage very differently internally- looks for profits not revenues, bases performance bonuses on attaining of yearly plan profits, little tolerance for losses even in cyclical businesses, tends to stay away from tech and very cyclical corp clients as well.
Wells had been flirting with Wachovia for years- attracted by the geographic complementarity of their basic banking businesses. Unfortunately, by Sept 2008, Wachovia included World bank and a sizeable Wall St investment banking division.
My hope is that the Wells old-fashioned banking style can prevail over the messes they have acquired- it will take patience and discipline to mold the bank back into the type of company it was before the merger, that is for sure.
I also hope that they improve their customer service at the "stores".