Banks across the globe had to raise trillions of dollars in capital as a result of the financial crisis, and now the bill for that borrowing is coming due.
It’s not a pretty picture. Worldwide, banks must repay or roll over $5 trillion of debt to bondholders and other creditors through 2012, according to the Bank for International Settlements.
Of the $5 trillion total, European banks owe $2.6 trillion, and U.S. banks $1.3 trillion. [more]
Gluskin Sheff analyst David Rosenberg says the Dow could go to 5,000.
Rosenberg's reasons: Even if an economic double dip is avoided, the market is not priced for slower growth, and the intense volatility in the major averages over the past three months is consistent with the onset of a bear phase.
“Bob Farrell believes a test of the March 2009 lows is likely,” Rosenberg points out.
“I don’t think anyone is in a position to debate five decades of experience, not to mention his track record. Louise Yamada, a legend in her own right, not to mention the likes of Bob Prechter and Richard Russell, are on this same page.” [more]
Okay, I admit I haven’t counted the exact number of stupid New York Times stories that I’ve blogged about, but it’s roughly nine. [more]