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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: saveslivesbyday who wrote (112208)3/23/2008 3:16:43 PM
From: ChanceIsRespond to of 306849
 
>>>with profit margins shrinking in traditional businesses like underwriting and trading,<<<

I am very much under the impression that a large portion of banks' earnings - or certainly earnings growth - came from trading in the last few years. I am certain that the banks have been shedding traders like fleas from a dog recently.

So lets see. On the income side, the earnings from originations and trading will be way down. On the expenses side.....aren't bad loans "expensed?"

I just don't see any profit growth in the banks for the next few years.

Yes, yes, the FED has engineered a steep yield curve which will help the pathetic buggers get well. That will be OK as long as the forced margin sales are put to a halt.



To: saveslivesbyday who wrote (112208)3/23/2008 6:59:59 PM
From: patron_anejo_por_favorRead Replies (1) | Respond to of 306849
 
I'm leaning towards the opinion that Wall street needs to be broken up in the worst way. Too much financial and political power in the hands of too few, making collusion to easy (and in fact, predictable). All to the detriment of the American people. Ron Paul was the only candidate that was even remotely close to being right, and nothing good will come of this until the above comes to pass.