Since I have such a high cash position I will just use that as my hedge, since I've lost money day after day, after week after week- the past three weeks attempting to short things. It was fun and games for the first 5-6 days but now it's starting to seriously hamper performance. So until the tide turns, and bad news actually means stocks go down for more than 4 hours, I'll be cutting back and just touting green shoots on a regular basis even if it means American Express (AXP) at nearly 40x earnings is still way too cheap and I should be buying.
Until then, I want to show you how your tax dollars will help banks continue to do "better than expected". Momma, have your kids grow up to be bankers. We changed the tax code for them, we give them FDIC backed loans, we pushed Fed rates down to zero, we give them TARP money and now bonuses for doing things they should be doing on their own - like modifying mortgages that they see some hope in saving.
- Six large U.S. banks could pocket nearly $10 billion in federal subsidies if they modify troubled home loans and are able to save homeowners from foreclosure, the Treasury Department said on Wednesday.
- The mortgage specialty arms of Citigroup (C), JPMorgan Chase (JPM) and Wells Fargo & Co. (WFC) would each earn over $2 billion for modifications that have long-lasting success, according to the Treasury's formula.
- The money is available through a $50 billion program to encourage mortgage servicers to ease the terms on troubled loans. Many more mortgage servicers will be eligible for the subsidies, the Treasury said.
I will stand and clap my hands tomorrow as JP Morgan's Dimon "navigates the bank through incredibly difficult waters". Yep... very very difficult.
9 comments:
Mark
I have become numb to all the easy money thrown at the banks in the name of protecting the system; I haven't become numb to your comments which are still great to read.
I suspect a lot of folks feel the same way
hell just froze over:
Land O'Lakes Inc. announced today it is laying off 120 employees and closing Madison Dairy, 1002 E. Washington Ave., its local butter manufacturing plant, within 60 days.a dairy closing, in WI...and a big one at that
frogs and locusts are sure to follow
what next, a brewery?
for the love of god, its all we wisconsinites have.
You still have the Packers and Brett Farve
Ok, well you still have the Packers.
I don't even know where to start. Is the idea to flood us with bailouts so we don't even know which one to begin to become outraged with?
Don't despair Mark!
The buyers of today have to live with their "prized" shares, you have all the flexibility for tomorrow.
It is a tough time indeed for rationality check, but let us see the bulls pushing another 5-10%...
Kill them bankers, bag them, feed them to the pigs and then finally they are good for something. Isn't it great to live in a vibrant democracy where common people have the say?
Comeon guys, don't be stingy, the banks need us! Its just $100 from every taxpaying citizen in the USA...its really not that much!
I guess HOG, GCI, ITW, CY, APH, FCS, BAX, JPM, HTLD all beat this morning so things are all good. I just think everyone will beat cuz they have lowered there forcast so low that they are painting this "the world is ok now" picture.
But then you have BTU still NOT giving an earnings outlook for the year (i thought things are back, why not give us something) and the horrible numbers by CSX, but wallstreet found a way to cheer
but then you have BBY cutting juobs, USB cutting 11%, WMT monthly number was horrible, but who cares about WMT, they helped us last 6 months now they are just a nobody, and your telling me the consumer is back, WHAT AM I MISSING
The market looks tired..need a rest.
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