June 08, 2011
– Comments (10) |
RELATED TICKERS: V
HOW DID THIS PASS
Because the banks were making ridiculous profits at the expense of small businesses.
Got a link man.
The small businesses could have just not accepted cards. The government needs to stop picking market winners and losers
By the way HarryCarysGhost..my other player, "ShortingChina" is beating you too ;-P
Welp, I figured this day would come, guberment has had a hard on for Visa for a few years now. This is a really stupid law and it won't help consumorers that much.
Actually the banks will reem them on their fees to make up the difference.
Visa's share price has been hit hard by this news over the years, I'm pretty sure Mr Market has priced that in. But I stick with my stance that if you can buy it under $75 do it.
Hell If it hits under $65 I would be buying more making it an ungodly appropriattion of my total portfolio..
Spelling eras were intentinal, and i'll check out the other prof.
In the long run-
will take shorting China down.
The only good news is that I believe some of the Democrats are now reversing course on this and trying to repeal it after a lot of small and community bankers expressed extreme displeasure over it. (Not sure how those efforts are going.)
But yeah ... it's pretty ridiculous.
People always frame the debate as "pro-regulation" vs. "anti-regulation", but that's such a BS dichotonomy.
Good regulations set ground rules that allow the banks to operate with a free hand, but set some broad outer guidelines on what the banks can and cannot do.
Bad regulations try to micromanage an industry and get into little details of pricing, operations, etc.
This fits squarely into the latter camp. What is a "fair price"? It's not as if banks are monopolies. It's a highly competitive industry, so the fees they set are, by most reasonable measures, a "fair price" according to the market.
This is a government imposed "fair price" that is at odds with market realities.
As always I agree with you on the banks (thougg I am far less knowledgable)
That said, and I am almost certianly wrong, I like the bank stocks here
1) This doesnt effect C. They make almost nothing on swipe fees, theyre selling for 0.64 p/b, and Vikram said the stock was cheap, and they have EM growth
2) BAC is selling at a 20% discount to TANGIBLE book value...that is friggin insane
3) JPM is under book...jpm didnt lose money during the crisis, dimon said the stock price is extremely cheap, and they are practically in bed with the fed....IMO, this bank has the best management in the world
4) GS has nothing to do with this. They will pay off their lawsuits if they get them and move on. Business as usual
and thats not including STD
Congress is going to continue to target them for another couple of months. Then when they realize they are choking the economy but choking the banks and they need to raise the debt ceiling, they will reverse their actions, and the banks will soar. They should all see like 40% gains at some point within the next 52 weeks. Well, maybe not JPM, I expect JPM to climb 20% within the year though...they are just too good.
Anyway, thats just my prediction...but what the hell do I know.
I know you did'nt ask me but the big banks don't know their head from their ass.
Visa is not a bank, and is walking around with this midget strapped to It's back.
That midget is the Government, and it's trying to take Visa down (why I don't know) It's like a really tight turtleneck.
I would love to see what the fair price on V is, I got it at $100, tell me if I'm wrong.
I don't dislike bank stocks. Just feel that they are becoming increasingly risk due to macroeconomic currents.
I'm not so worried about the Durbin Amendment. I'm more worried about a few other things:
(1) The Federal Reserve attempting to impose higher capital requirements, which can cause further credit contraction in the economy, and further dilution at the banks
(2) Dodd-Frank, in general, might cause some credit contraction
(3) The Eurozone is a nightmare and I'm not sure how it's going to affect the US
(4) China's banking system is a house of cards that will crumble very soon (and indeed, is already starting to fall). I'm not sure how this will affect US banks.
(5) More callas for austerity in the US will excerabate credit contraction.
Overall, I think the banks are cheap. But "cheap" is relative and they cease to be "cheap" if the government arbitrarily keeps changing the rules.
So I don't know what to think. I still have significant bank positions. I just wouldn't bet more than maybe 20% of my portfolio on the banks.
Hey valy hot link coming at ya-