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Strategies & Market Trends : John Pitera's Market Laboratory

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To: da_cheif™ who wrote (13389)	11/26/2012 11:50:05 PM
From: Hawkmoon	6 Recommendations Read Replies (1) of 33421

Here's a potentially good reason for why John's prediction may come to pass: blogs.barrons.com Let's remember that Bank earnings are also heavily dependent upon cheap money from the Fed, and JPM, WFC, GS, C, BAC, and AIG are 6 of those 10 companies. On the other hand, it's often said that the banking sector generally leads the rest of the economy out of recession. But given that $67 Trillion (nearly 100% of global GDP) of UNREGULATED financial activity exists in the financial system, it's quite possible that when the European crisis finally comes to its inevitable climax, those profits will disappear quite quickly. Most of the collateral for the Shadow Banking system is increasing dependent upon Sovereign debt. As more and more countries find themselves heavily indebted, but unable to raise the tax revenue to pay it off, this collateral will become increasingly shaky. Hawk

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