So Wells comes out this morning and says they're going to make a "record" profit, claiming an expected 55 cents (.vs. mid 30s expectation)
It must be nice to be able to keep loans on the books at whatever price you feel like, receive billions of taxpayer money including "assistance" in rolling up Wachovia, and then turn out to not need it, right?
That is, if these numbers are accurate.
Wells premarket is ramping from $14.89 at the close yesterday and now trading premarket at $18.10, up over $3 or some 30%.
This leads one inescapably to the following:
* Either Wells is lying (obfuscating losses through unrealistic marks, etc) OR
* These "bailouts" were no such thing - they were a simple and transparent looting operation by the banks that is now showing up directly in "earnings" (and will shortly show up in the bonuses of executives too!)
So which is it folks?
Are the banks really that healthy? Because if they are, you've been robbed to the tune of tens of thousands of dollars per person in this country, and it is long past the time that you act to stop it.
If they aren't, then how is it that these banking executives are not residing in the graybar motel for cooking their books? Again, it is long past the time that you, the citizens of this country, act to stop it.
And while we're at it, perhaps you'd like to tally up the income you're NOT making on savings (CDs, etc) through the much lower rates of interest you're being PAID so that these guys can post "record earnings"? Naw, we don't want to hold The Fed accountable for their monetary policy - a backdoor way of looting the public even further - do we?
PS: AIG's former CEO Greenberg is on CNBC this morning and he actually used the word "LOOTING" and insisted that the government must claw back the payments that were made as a "passthrough" - exactly as I and others have called for.
While I object to the characterization that Hank Greenberg was "blameless" in AIG's morass, it is nonetheless refreshing to hear people like him talking about what we should and indeed must do - that is, claw back the inappropriate and arguably illegal "pass through" payments that in my opinion are nothing more than pure robbery of the taxpayers of this country.
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LOL .. Man ..You guys had me going for some time there. The Coming Depression, Banks closing. Well, i'm a wiser person now, thanks.
ReplyDeleteBest time to invest is now folks, the markets going to boom big time. The banks aren't failing, they will not let that happen. It's not going to get any worse either.
Now that is the most economically funniest post EVER. Best time to INVEST? "THEY" will not let it happen? THEY will not have a choice when this 1.6 QUADRILLION derivative bomb goes off... you can kiss your little investment in the casino...bub bye
ReplyDeleteWhat is sad is that years ago this type of fraud would have at least been hidden or lied about.
ReplyDeleteHeck, at least ignorance was better than this.
TPTB do this to us and laugh in our face. They know they can do it and get away with it. Years ago, at least there might, I say might, have been a tiny-weeny bit more secrecy about this type of behavior.
Now, it is all in the open and no one seems to care, but a handful of people.
The patient has maybe 2-5 years left and then it is canned food and ammo.
Left unchecked, this type of corruption at the highest levels of goobermint cannot go on for very long before the entire country collapses.
What I see is the former US breaking into several regions or states just going it alone with the others forming larger regions.
However, despite the American Idolization of most of us, the country cannot survive much longer with this type of corruption.
I loved the 'its not going to get any worse' comment. Now that was funny.
ReplyDeleteHey, I have one question who are they? And one more thing, keep your heads in the sand.
ReplyDeleteJust like those did before the great flood.
The stock market is up. That is true, but so are some that have a short time to live. A last spur, you might say......... then the grave. Take a good hard look at the world right now. Jesus is still King of Kings, Lord of Lords. Time is running out, please turn your hearts to him....... He will not let sin run on for ever..............
The first comment - obviously another one of these pollyanna stock traders, ever the optimist!
ReplyDeleteHey look, optimism is great, and we should always try to find the bright side. But this isn't like any other recent recession. The profound debt levels have to be corrected at some point soon, and they will. All economic indicators are in free-fall, not like previous recessions where only a few indicators were falling then back up.
Furthermore, how does someone like the first commenter NOT see the lack of morality and ethics in what is going on right now? Is it that traders only give a rip about growing their own profits, regardless of how they were obtained? I'm all for profit, but look what's going on. What price is worth paying for the stock market to come back and the inflated profits based on mountains of debt to return. I weep for America. We have truly sunk to a new low.
ReplyDeleteThere has always been a lack of morality and ethics in big business / banking. Nothings changed. When it comes to money, anythings fair. As for post no.1, I kinda agree, things are getting better, look at the markets lately.
ReplyDeleteThis looting of money is the precipice for which our pride, our faith in justice,our collective view of society and our value of integrity will fall, destroying the pillars of human aspiration. The intent of this blatant government endorsed crime is to mold our perception of others and to some extent our selves as liabilities. The public backlash against those whom were suckered into houses they were destined to lose is just the beginning. Just wait for the loathing and blame to spread through all facets of society; the real trickle down effect. Then we shall be dealt with... as liabilities.
ReplyDeleteHow are things getting better? Unemployment is only predicted to continue plummeting, commercial real estate is in the beginning stages of tanking, industrial production and exports in China continue to drop and are off by 1/3 -1/2 over last year. The list goes on. All economic indicators are falling off a cliff, not just a few as with previous recessions that tended to be short term. Banks are laden with trillions in debt and are insolvent.
ReplyDelete"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."
ReplyDeleteLudwig von Mises
The first commenter is probably not a stockbroker - but an owner or agent of MERSCORP or it's subsidiaries.
ReplyDeleteMortgage Electronic Registration System. M.E.R.S. is owned by MERSCORP. MERSCORP is owned by the banks. Anyone with a mortgage naming M.E.R.S. as the mortgagee is destined to fail and foreclose, don't take my word for it - check into it yourselves.
The banks don't want your home - they want to SELL it, and take the money you paid as well. They do not lose when you foreclose, they OVERAPPRAISED you home, so when they sell it it will probably either be sold at the CORRECT market value, or sold several times at land value to investors, who take out loans again from the banks to flip them. The banks can also claim the difference, if any, as a DEDUCTIBLE LOSS, either way your home gets sold under another M.E.R.S. mortgage and they continue to make money off the next sucker.
Take down this MERSCORP - and the fraud committed by the banks will become crystal clear - it is thier smokescreen! Can't say more here - but you should look into what I'm talking about....
I notice that Wells Fargo has numerous sites touting "Fraud Protection." Having had my share of first hand experience with Wells Fargo Investments, I would recommend that the best Fraud Protection you can get is to stay away from Wells Fargo Investments. This is a textbook example of a corporate welfare boondoggle gone amuck. Never was a saying more true than this: "The best way to rob a bank, is to own one."
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