Holy Crxp! The Precious on a tear, new record $1270.00!!!

*Preccccious* up an astounding $22.90 right now to ANOTHER record of $1270.00.

It’s been a while, but you know what time it is…

We all know QE2 is coming. If housing takes another 20% hit, which it will, the TBTF are insolvent, again. (IMO :0>) Especially Wells and BofA who have all those HELOCS that are worthless if those homes go into foreclosure.

JPMorgan Chase analysts lowered expectations of housing recovery in the next four years. Jon Daurio, chief executive at the distressed loan purchaser Kondaur Captial, warned that home prices could fall another 20% as well….

Freddie Mac expects 4 million new and existing home sales in the third quarter, a possible 20.7% decline from last year and 23% drop from the previous quarter….

FD- We are BofA shareholders (NOT by choice, sadly we are holding the former Merrill shares, mom is very conservative and leery of letting them go). We have many, many posts here on the BofA/Merrill merger.

So, we should be seeing QE2, an ‘all new!’ HAMP or some sort, hopefully the MorganStanley 1 pg refi for CURRENT mortgage payors is in there someplace, nice to TRY TO PRETEND to avoid moral hazard once in a while boyz…

Also consider, we all HOPE and PRAY and WORK for a GOP sweep of House and Senate in less trhan 60 days (yay!), and this will put the brakes on Obamanomics to a large extent, BUT it will also stop fiscal stimulus from the Critters leaving Gentle Ben and his fear of Turning Japanese to step in. This in addition to Obama’s EXPORT plan, which I think is sadly misplaced has the USDollar tanking and GOLD rising as a result.

Another wild card is Chuckie Cheese Schumer, post election axx kicking, trying to grab some good vibes by launching a trade war with China which UNIONS want since Summers and Timmeh cannot get any results from our largest trading partner on the yuan peg.-again GOLD as safe haven/falling USD/helicopter Ben shelter as USD falls…

Anywho the precious knows what is coming and is ready for hit. This outs even sister Silver’s awesome performance in the shade.

Advertisements

September 14, 2010. Tags: , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. 2 comments.

Market Mover Tuesday: Stress Test Havoc continues, 10 banks need more capital…

and the leaks go on…

CNBC:

..The exact roster of banks needing to build their capital positions is still unclear. Banks are expected to be briefed on the official results on Tuesday.

The Federal Reserve and Treasury Department also will tell them how policymakers plan to publicly unveil the market-sensitive results, the source said, speaking anonymously because the discussions are private….

..Fed Chairman Ben Bernanke and Treasury Secretary Timothy Geithner are scheduled to present the findings of the regulatory stress tests on Thursday in a 150-page document, the source said.

Who Who Who!?!

Citigroup and Bank of America are expected to be among the companies needing to boost their reserves, Fred Dickson, chief market strategist at D.A. Davidson & Co said on Friday.  Wells Fargo and JPMorgan also are among the banks likely to need more capital, Dickson said.

Oh okay, it’s just all our biggest banks….and the market rallied in the face of this sending the S&P into the black for the year yesterday…D-E-N-I-A-L….

I have an idea, let’s subject the TOTUS Budget Forecasts to the SAME stress test scenarios and see what happens to the deficit! Pffft!

May 5, 2009. Tags: , , , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, TARP, Uncategorized, Unemployment Statistics, Wall St. Comments off.

Update: BofA refutes FT report, says not raising capital: Market Mover Monday: red-headed stepchildren of Stress Tests try to raise capital and save themselves from Government….goin’ down…

Update: 8:57am EST: CNBC Becky Quick live now talking to Buffett reporting BofA issued statement denying FT report that they are raising 10b in capital…..the fact that the banks are fighting it out with Team TOTUS bean-counters IN THE MEDIA is frightening..yeah I sold in May baby and I would go away could I afford a vacation in this economy, HA!!!

_____________________________________________________________________________________

Here they come, walking down the street, they get the funniest looks from the Treasury agents they meet..

Hey Hey they’re the Zombies, people say their capital’s down…

yada yada…they managed to get everyone but JPMC under their thumb here, they nabbed Wells Fargo and PNC too….

CNBC:

Bank of America is working on plans to raise more than $10 billion in fresh capital, even as it and Citigroup launch last-ditch attempts to convince the U.S. government they do not need to bolster their balance sheets, the Financial Times reported.

Citing people close to the situation, the paper said that Citi, Bank of America and at least two other lenders will on Monday attempt to convince the U.S. Treasury and Federal Reserve that the findings of “stress tests” into their financial health were too pessimistic.

Bank of America, which has had $45 billion in government aid, was found to need well in excess of $10 billion, the Financial Times reported on its website on Sunday, citing sources.

Regional lenders Wells Fargo and PNC Financial were also among the banks that would need to raise more capital unless they could persuade the authorities their findings were wrong, the paper reported, citing people close to the situation.

*Monkees courtesy of OrangeTabbyCat3

May 4, 2009. Tags: , , , , , , , , , , , , . CITI, citigroup, Economy, FDIC, Finance, Music, Obama Administration, Politics, Popular Culture, TARP, Uncategorized, Wall St. 1 comment.

Market Update: Off to the Races on Wells Fargo Profits Call…

Half an hour to the close and DOW is up 214 to 8052, S & P up 26 to 851 and NAS up 52 to 1643..

The markets are ecstatic over the Wells Fargo profit talk and the fact that the stress tests are over, even though we have no idea how they went, what metrics they used and what 1Q earnings look like for the financials…(aside from Wells who released early)

But since Wells stepped up to the plate with the news that the Wachovia acquisition may give them a record profit, investors are hopeful that the big financials will begin leaking the news that they feel they have passed their stress tests…

CNBC:

Wells Fargo‘s acquisition of Wachovia late last year helped the bank generate a surprisingly healthy $3 billion in earnings for the first quarter, Wells Fargo CFO Howard Atkins told CNBC.Wells Fargo, the fourth-biggest US bank, stunned investors Thursday by announcing it expected the record results. The news sent the bank’s stock [WFC 19.20 4.31 (+28.95%) ]soaring and pushed the entire stock market higher.

In a live interview, Atkins said the bank released the results two weeks early because it felt the the news was important to the market.

Seems like a very smart move to release earnings early get ahead of the federal steamrolling TOTUS bank controlling ensnarement mechanism called stress test results….

TOTUS does not want to take the TARP back from the big financials, he wants to control lending. They want to give it back. Good for Wells getting ahead of Geithner…I still wouldnlt buy a bank other than one in Canada though, too risky for me :0)

Advice for Jamie Dimon, send your TARP repayment paperwork to Sheila Bair at FDIC, she does what needs to be done not what she wants to do..ask the regional banks they applied to FDIC not Timmeh….

April 9, 2009. Tags: , , , , . Economy, FDIC, Finance, Obama Administration, Politics, TARP, Uncategorized, Wall St. Comments off.

Dead Dividends Walking?

Slowly but surely, the financials are cutting their dividends. Ostensibly this is to preserve cash, but assuredly it is to try and keep their ratings up as the ratings agencies that led us down this road to hell overcompensate for their colossal failure to properly rate the toxic waste that poisoned us all by coming down hard on financials now…..

As dividends dissipate, and the Obama Budget raises tax rates on dividends and cap gains as early as this October, investors should take a look at their allocations. (I keep buying KO on dips, that dividend, like Pepsi is going up)

Wells Fargo is the latest, cutting their dividend 85%-

Wells Fargo on Friday cut its dividend 85 percent, a widely expected move that the fourth-largest U.S. bank said will save $5 billion a year.

The San Francisco-based bank also said it plans $2 billion of additional cost cuts in 2009, starting in the second quarter. It did not say where they will come from.

Dozens of lenders are reducing or eliminating dividends to preserve capital needed to cover rising credit losses.

The Street says COF is next on the block….

March 6, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Obama Administration, Taxes, Uncategorized, Wall St. 1 comment.

%d bloggers like this: