Thursday, April 9, 2009


I have to post this also off the skf board.....Wilsin is a great read here..........enjoy..

I could go on but I think that ultimately, the coordinated use of the pulpit was an effort to break the fingers of those whom would push the short button. They prefer that you buy and baghold long only. Many will not be pushing buttons ever again after today."Yes, JSR, the no bid market is almost here after today's action. They had nothing left in the arsenal after uptick rule change, so they went with fake numbers, lies and deceit. That's not a long-term formula for success. Reality will bite back and hard. Only question is when.As for WFC, the numbers make no sense. Are they using the new FASB numbers such that they made $3B EXCEPT FOR THE $4.9B they must writeoff? Right now that is a confused mess. But there is a tell in WFC's release today: their allowances for credit losses are $23 billion, which is MORE THAN 1/3 OF THEIR ENTIRE MARKET CAP even including today's surge.So, all I can say is, their lips were moving, so they were lying. You cannot need gov bailouts and be profitable on a record level at the same time. They, and this goes for all big banks, are either lying, stealing or both. If they are so profitable, pay back the gov. If they need the gov money, then they cannot be THIS profitable if at all.Here's another wrinkle, they generated all of these profits while borrowing from the Fed at 0% and paying the gov preferred divs at 5%. What?! How does that happen? Only if you are on the other side of the looking glass.At this point, my sole theory is that the government is a co-conspirator and accomplice in the greatest felony in history. I urge everyone to write their representatives, senators and White House and demand to know WTH is going on? And how can this be? DEMAND that they pay back the bailouts IMMEDIATELY if they are profitable on a record level. Then let's see what happens.


  1. From Denninger:

    Tired Of Getting ROBBED America?

    Look, I'm all for profit, ok?

    I'm a greedy capitalist pig and admit it. After all, I made my "nut" building a company, sold it, and now trade for a living.

    Is there anything more capitalist than doing those two things?


    But there is a difference between being a capitalist pig and being a robber baron, and this Wells Fargo announcement needs amplification, now that I've gotten the blast ticker out and have some time to write.

    Here's the deal guys:

    Spreads have widened over the last year on broker (and direct bank) mortgage pricing .vs. Fannie and Freddie bond pricing.

    How much?

    About 200 basis points worth.

    Why is this important?

    Because you, the consumer, are getting cornholed in the "pricing" these guys are "offering" you!

    That is, the banks are exploiting the dislocation in pricing and the credit markets to screw you and post what Wells now says are record profits.

    Are you being told about this? Of course not.

    Are regulators stomping on this? Of course not.

    Are you being looted to pay for this? Of course you are.

    You are seeing near-zero (or actual zero) interest earned on money you loan to the bank (when you make a deposit or buy a CD you are loaning money to the bank) and yet when you go to borrow money you're being screwed with record-high spreads that the bank is pocketing - in mortgage and credit card interest rates charged.

    How much does this add up to?

    About $4,000 in extra profits per mortgage on top of the "usual" $1,000 profit.

    That's right - the banks are making five times the "usual and customary" profit per loan, and it is coming right out of your hide.

    I've been hollering about this for months (as has Mish Shedlock) but it appears that both our intrepid lawmakers and the mainstream media simply refuses to talk about it.

    When does this stop?

    When you, America, are tired of being ripped off and demand that it stop.

    Remember, the mantra of both government and The Banks is "never waste a crisis."

  2. Yes, the spread is far too wide and yet they still cannot profit owing to negligence.
    For those few of us who have been frugal enough to pay down the mortgage - God's in His Heaven All's Right With The World.
    Buon Pasqua.

  3. My ass was handed to me today......worse day I ever had.

  4. Ok, we can print the lies but tell the banks not to leak the results of the stress test...

    This is bs and I am tired of it. SA