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Location: where you sip the tea of the breasts of the spinsters of Utica
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I'm sure it's good and exciting news that one of the major banks is predicting a very large profit, and that other economic indicators aren't plunging as quickly as feared ..... but is that really cause for a 3.81% increase in the S&P 500?
There may not be much to like about Alan Greenspan at this time, but his phrase "irrational exuberance" is one of my favorites.
And they also changed the accounting rules just in time for 1Q..mark-to-market turned into mark-to-whatever-you-want plus they can remove some liabilities from their income statements.
It would be interesting to compare 4Q08 with 1Q09 and see how much changed.
So where are the results of this stress test they ran on the banks before these accounting changes ?
Smoke and Mirrors HappyTexan, smoke and mirrors... stock investors dig it and are going to speculate as much as they can before the next dip.
Funky accounting and the fact they are borrowing at nearly zero.
Think about it folks, if it's that easy to fix the banking system - what was all the fuss about. It's not over by a long shot for WFC, BAC or C.
March was the highest number of foreclosure notices issued in California by since the crisis began. There is, as IMF is reporting $4 trillion in bad loans still out there and need to be written. Commercial real estate is just starting.
And here's China reporting they have almost $2 trillion in reserves. Who's the one with the money now ? Having money will give them some power. Their reserves only rose $7 billion in the first quarter, down from last year. And here we are with our government in the back room printing money
China foreign exchange reserves at $1.954 trillion (http://news.yahoo.com/s/ap/20090411/ap_on_bi_ge/as_china_foreign_reserves_6 - broken link)
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