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Front Page (http://boombustblog.com/reggie-middleton/2010/07/12/another-contrarian-win-for-boombustblog-global-macro-analysis-the-overt-optimism-in-uk-financial-predictions-comes-back-to-bite-them/ - broken link)
http://boombustblog.com/media/wpmu/u....0_Page_02.png The IMF is under estamating the drag that the high debt load the world is trying to cary is going to have on the economic growth in the future. We need to dump a lot of debt in order to have strong ecconomic growth.
Front Page The MSM is catching on to what Reggie has been saying for a long time. The European banking system is on the edge of meltdown. And it will take our banking system with it.
After a Careful Review of JP Morgan’s Earnings Release, I Must Ask – “What the Hell Are Those Boys Over at JP Morgan Thinking????” again the titel says it all.
"The delinquency and NPA levels drifted down a bit, but they are still at very high levels. Charge-offs came down but the reduction in provisions has been quite disproportionate bringing down the allowance for loan losses. In 2Q10, the gross charge- offs declined 26.6% (q-o-q) to $6.2 billion (annualized charge off rate – 3.55%) from $8.4 billion in 1Q10 (annualized charge off rate – 4.74%). But the provisions for loan losses were slashed down 51.7% (q-o-q) to $3.4 billion (annualized rate – 1.9%) against $7.0 billion (annualized rate – 3.9%) in 1Q10. Consequently, the allowance for loan losses declined 6.2% (q-o-q) from $35.8 billion from $38.2 billion in 1Q10. Non performing loans and NPAs declined 5.1% (q-o-q) and 4.5% (q-o-q) respectively. Thus, the NPLs and NPAs as % of allowance for loan losses expanded to 45.1% and 50.7%, respectively from 44.6% and 49.8% in 1Q10. Delinquency rates, although moderated a bit, are still at high levels. Credit card – 30+ day delinquency rate was 4.96% and the real estate – 30+ day delinquency rate was 6.88%. The 30+ days delinquency rate for WaMu’s credit impaired portfolio was 27.91%." From the link.
In simple terms they didn't put aside as much money as they probably should have for the bad debt they have on their books, and the debts that are going to go bad as well. This made profits look better than they are really looking and they don't look that good. The same probably aplies to GS as well but that is pure speculation.
Front Page (http://boombustblog.com/reggie-middleton/2010/07/12/another-contrarian-win-for-boombustblog-global-macro-analysis-the-overt-optimism-in-uk-financial-predictions-comes-back-to-bite-them/ - broken link)
http://boombustblog.com/media/wpmu/u....0_Page_02.png The IMF is under estamating the drag that the high debt load the world is trying to cary is going to have on the economic growth in the future. We need to dump a lot of debt in order to have strong ecconomic growth.
It would make all the oil float for easy retrieval.
Toxic debt.
It could then be refined, and used as useful money.
:d
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