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Bank Profits



May 05, 2009 – Comments (4)

Here is a post by Thomas Tan that outlines how banks have manipulated profits.

In previous posts just by simple extrapolation and my number sense or instincts I've said that I expect bank profits to stablize in the range of 10-20c on the dollar from the peak.  

Tan points out that it will take banks a decade to earn their way out of this mess and expects them to stay flat for the next 20 years.

Certainly if you look at the accounting tricks they eventually all must come to an end ...

4 Comments – Post Your Own

#1) On May 05, 2009 at 11:20 PM, soycapital (< 20) wrote:

Wow! that is an eye-opening article by Thomas Tan!! Some kind of fancy book keeping? Thanks for posting it!

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#2) On May 05, 2009 at 11:28 PM, goldminingXpert (28.82) wrote:

Don't rain on the bull parade Dwot. Everything is bullish. Green shoots. Green shoots. There's no depression and the banking system DEFINITELY IS (not) SOLVENT! (you're nuts if you) BUY BUY BUY!

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#3) On May 06, 2009 at 6:24 AM, DaretothREdux (52.64) wrote:

lol GMX.

Thanks Dwot as always!

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#4) On May 06, 2009 at 8:58 AM, dwot (29.28) wrote:

Lol goldmining...

Today story about BoA needing to raise $35 billion...

I think it will take at least a couple more years before banks work through the mess of bad debt on the books...

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