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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Augustus Gloop who wrote (13182)	6/7/2012 2:01:32 PM
From: Hawkmoon	Read Replies (3) \| Respond to of 33421

Here's a question for the thread.. Aside from collecting interest on debt holdings (private and governmental), how can a bank make money in order to restore it's balance sheets? Proprietary trading in various markets, of course.. And since the most lucrative part of such trading involves extreme volatility, isn't it only natural that the Fed may actually wish to induce such volatility in the markets that permit the TBTF banks to rake in excessive premiums and profits? So maybe, just maybe, the Fed's intent is to introduce some extreme volatility into the markets in order to their preferred TBTF banks (which control most of the market making activities already) the opportunity to rake in some extra cash.. Just my conspiracy thinking.. I'll put my "tin hat" back on now.. Hawk

To: Augustus Gloop who wrote (13182)	6/14/2012 2:52:52 AM
From: John Pitera	2 Recommendations Respond to of 33421

Hi M, you have good points and raise good questions. here's a statement that you are not expecting. Florida real estate has "Bottomed" in fact it was almost a year ago. I have one of my closest contacts that has been watching blow by blow the 70% decline from the top in 2005, Florida most likely was the front runner in the country in the real estate speculative mania.....But prices declined in many bankruptcy auctions by 80% of more and now you have a whole new crop of owners with an extremely lower cost basis for their mortgage. This is in Volusia county, but we've talked to people in the upscale west coast areas of Naples and Fort Meyers and many people got burned by losing on average 66% on a home built in 2003-2004. But the really big developers are taking prime real estate in Daytona beach, and other destinations and building new projects. 3 years from now it will be common wisdom that prices have bottomed in many places, I don't have as good a feel for California..... and we have to remember that in the heartland...... you have small town that have demographic issues of younger people leaving.... and thus they have different drivers of their pricing. Now if we want to talk about the really bearish possibilities........ Florida has put just about all coastal or near coastal real estate in a state funded "risk pool" for insurance. And the state is out of money for that fund. I have forecast for the huricane season .... that we are just entering ..... but Maybe I'll make that a separate post for our short attention span followers. -vbg- John