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alstry (36.12)

How FU Virus Stupid is CNBC???

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April 20, 2009 – Comments (4)

Today's Headline:

Growing Credit Worries May Snuff Out Stock Market Rally

Credit concerns, be they at the consumer or commercial level, continue to bedevil banks and the broader economy.

YOU GOTTA BE KIDDING ME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

This ridiculous headline comes out today?????

For the past 12 months, unemployment has been growing, businesses have been shutting down, commercial real estate prices crashing, foreclosures rising and credit card defaults exploding.

I am talking to bankers or people that examine banks and they are wetting their pants.  The past eight weeks has been incredible as debt detioration is reaching unprecedented levels.  Revenues to cities and states is evaporating.

Remember, many financial institutions are leveraged to capital over 10X to one.....so if only 10% of their debts get wiped out, the institution can be insolvent. 

The problem is that revenues can no longer cover debt serviice.  As more and more default, expect revenues to contract further and now the deterioration is going parabolic.

Now Obama is going to cut $100 million out of the budget???  How many job losses and defaults is that going to cause???

4 Comments – Post Your Own

#1) On April 20, 2009 at 3:32 PM, alstry (36.12) wrote:

April 20 (Bloomberg) -- Banks are likely to realize about $400 billion more in losses on soured assets, requiring further injections of government capital, JPMorgan Chase & Co. said.

Banks will need to set aside about $215 billion more in reserves against their holdings of $2.1 trillion of U.S. home loans that haven’t been packaged into securities, mortgage-bond analysts led by Matthew Jozoff in New York wrote in a report dated April 17.

$400 Billion ONLY???  and this is a banking analyst that works for a bank???   The beat goes on and on and on....

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#2) On April 20, 2009 at 3:56 PM, motleyanimal (85.87) wrote:

If the economy is Bedevilled, Who You Gonna Call?

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#3) On April 20, 2009 at 6:56 PM, Varchild2008 (84.06) wrote:

Don't worry...The Messiah will fix it... The Messiah fixes everything! 

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#4) On April 20, 2009 at 7:34 PM, usmilitiadude (32.41) wrote:

Over nine hundred points in one day, nice!

I'll be worried for you (and me maybe) if you start saying seeds of edible plants that produce heirloom seeds will be worth more than gold in the coming months. I heard that on a radio commercial in the last few days.

-usm

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