Mike: Question about credit spreads and moneycenter Bank earnings reports
Credit Spreads: since I read it is the concern of Ch. Greenspam that
credit spreads are too wide, historically, is there a parallel to the current situation with the impact of hedge fund deleverging and rate cuts action. In other words, is it reasonable to expect that lenders will be encouraged to lend again to junk or even AAA corporate borrowers, as a result of these cuts, or will they be inclined to continue to decline loans.
Moneycenter Banks EPS: with JPM out today showing losses in Russia, and more outstanding to be revealed in future quarter earnings/losses, and more hedge fund/trading losses on their horizon, the stock goes UP 3+ points today.
I know about buy the rumor, sell the news, but the banks are only leaking the bad news out slowly.
Bank of America gets shareholder lawsuits today and stock goes up.
Given your analysis of "full collateralization" statements by banks, what do you expect the impact on the market will be of further revelations by these banks of trading/hedge losses, with this week's
earnings statements.
At times like these, my feeble attempts at logical analysis are not up to the "Alan in Wonderland" scenarios being played out.
Thanks for your insights
vocex |
