November 03, 2007

Gee, what a shock. Bank shares getting ravaged as traders fear there's still billions more in write-downs to come. Ya don't say?


Hint to traders and MSM: The writedowns are just getting started. When the smoke clears, they'll be in the hundreds of billions, more likely trillions. Banks will fail. Taxpayers and shareholders will get burned. And it was all so obvious (to some).

It's called a Ponzi Scheme. It's called The Greatest Crash in Recorded Human History. And someone had to be left holding the bag.

Gonna be fun to see some of the former leaders of Merrill Lynch, Citibank, Countrywide, WaMu and more frog-marched one day. It's called Sarbanes-Oxley, and damn, it's sure not a good idea to sign inflated or falsified financial statements anymore. I guess they didn't get the memo. Had to keep the shell game going to cash in those hundreds of millions of dollars I understand, but still...


Meanwhile, know your FDIC limits HP'ers. More bank failures are on the way...

Banks hit again as credit fears spread

Fears of a fresh wave of losses arising from the credit squeeze spread around the globe on Friday, depressing stock markets in Europe and Asia and savaging bank shares for the second day in a row.

Despite a surge in US employment growth last month, investors remained worried that banks and other financial institutions still faced heavy losses arising from the troubled US mortgage market and related securities.

Andrew Wilkinson, analyst at Interactive Brokers, said: “A daisy chain of market reports predicting continued writedowns and runaway credit losses” at the biggest banks and brokerage firms hit investor sentiment.

17 comments:

Anonymous said...

I call it justice.

Anonymous said...

Speaking of Penn Square bank:

http://www.fdic.gov/bank/historical/managing/history2-03.pdf

Anonymous said...

BestBank owner Mattar commited Suicide by Jumping from his 27th floor Denver Apartment building because he was facing Jail and financial ruin. He was 68 years old. This may be a portent of many things to come. His bank became insolvent by issuing 500,000 credit cards to quote "credit challenged" customers.
This will lend more credence to that famous fiction story about The (First) Great Depression where some rumor hit the streets that people were jumping out windows as they faced financial ruin on Wall street. In 1987, the fiction reared it's head again as NYPD sent Police onto Wall street in fear that people would be jumping out of windows. Don't worry, 3's a charm.

Dariusz said...

Keith,
WE LOVE YA!

Edgar said...

Nice drama Keith. The system is too corrupt for all of that. They don't even count the money anymore. FNM hasn't filed a statement in years. Nobody in authority cares. In fact, they'll help them cook the books.

Buba Bubbler said...

Bring it on!Let these greedy pigs suffer.Let the carnage begin.

Mark in San Diego said...

Now that Citi and Merril have sacked their CEO's, (with many more to come) the writedown process can really begin - new CEO's can blame it all on former CEO's for years to come.

As for the "great" job report - manufacturing and construction were all down, but jobs in leisure (read hotel maids) and healthcare (read low paid workers at resthomes) all increased. . .just like the old "In Living Color" segment about the family where each person had 4 jobs.

As I have said before, this whole mess is happening in slow-motion, rather than a one day crash, so the sheeple don't seem to notice.

Anonymous said...

Hey Keith,

Any put options on Finance companies?

greyhound said...

Proshares SKF short financials had a very nice week thank you. SRS short real estate did well also.

Anonymous said...

Keith, I've been religiously reading your blog for some time now, but I'm starting to get impatient. When do you think we'll see some real blood on the streets? Not just this slow drip, drip, drip....

Anonymous said...

Makes enron look like a tea party

Anonymous said...

I saw a teenager buying an iPhone yesterday, so I know everyting is going to be OK.

Anonymous said...

holy crap - deutsch (?) bank has an additional 10 billion in losses!!!

buy mo gold!

Anonymous said...

You are all DOOM AND GLOOM. Look at how in the past you have screamed this message of DOOM AND GLOOM and yet this country continues to prosper and continues to grow.

If I had a dollar for everytime people like you predicted that the economy would collapse, I would be a very rich man.

Anonymous said...

Where do you equate this with a Ponzi scheme. Look up the definition of Ponzi scheme and you will see that you are using this out of context. In a Ponzi scheme no actual property or product changes hands. You pay investers with other investers money, and then stop paying out all together when you are getting ready to bail.

LauraVella said...

Bay area credit union goes under.


http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/11/04/BA7FT67CK.DTL

Anonymous said...

The fed is part of the problem:

http://www.reuters.com/article/marketsNews/idUKN0261771720071102?rpc=44