C tops the charts for avg. analysts price targets (tops in terms of upside potential) with BAC I think second or third. I’m done even looking at C for a while. Too risky for my style and there are a few other fish recently discovered in the pond. What’s up with the code words here today????
Last evening runedge shared with me a radio interview with Bove. Bove is a bull and shares his reasons for his bullish outlook stating that the banks don’t need to issue new loans to become profitable because the reversal of provisional losses will quintuple earnings. Anyway Bove has some interesting things to say over the ten minute interview.
Last evening runedge shared with me a radio interview with Bove. Bove is a bull and shares his reasons for his bullish outlook stating that the banks don’t need to issue new loans to become profitable because the reversal of provisional losses will quintuple earnings. Anyway Bove has some interesting things to say over the ten minute interview.
For the next few months,
Traders - Short financials.
Investors - DCA purchasing of BAC, JPM and GS. Sell C.
Short the regionals due to commercial RE but not sure about the big banks. I think the coming Q is already priced in the stock. I do like his view on how higher fed funds will actually improve profitability by increasing prime while allowing the banks the opportunity to keep their costs down (rate paid on deposits). I also like his take on the two headed view the market has of inflation.
Chip and pin isn’t used here. Too many Americans are still using their cards to scrape snow and ice off of their windshields.
U know, if they put a DIGITAL ANGEL VERISIGN CHIP into your right hand…and you were to verify your identity with that along with your card…...
Here I am dreaming of summer at the lake and you remind me why I’m moving to a small town that generates its own hydro power, has its own airport, and is high enough that easterly high altitude winds tend to go south or north of the region.
Well, one of the LEPER SISTERS, decides we need MORE FLIMFLAMMERY…...
.... and they are now willing to sell some “Magic Moxie” to the next fool in line…
NEW YORK (MarketWatch)—Questions of the day: Would you buy a round-trip ticket on an airplane prone to crashes? How about a car with a history of serious brake problems? Interested in a TV that works great, except for the picture?
If you answered yes to any of those, do I have an investment opportunity for you.
Citigroup Inc. /quotes/comstock/13*!c/quotes/nls/c (C 3.23, +0.05, +1.57%) , our taxpayer-funded national bank, is readying a new credit derivative, the CLX. Basically, the CLX is systemic risk insurance that will pay out in the event of a financial crisis. The basic premise is to allow investors to hedge against a spike in funding costs. According to Risk Magazine “the CLX is constructed as a sum of the Sharpe ratio—deviations from the mean divided by volatility—of various market factors, such as equity volatilities, Treasury rates, swap spreads, corporate bond swaption-implied volatilities, and structured credit spreads. Citi will make the CLX tradable by using fixed historical values for the mean and volatility parameters, eliminating the need for costly recomputation from lengthy time series.” Read Risk Magazine story on the CLX.
If you understood the last paragraph, please take two bailouts, a bonus and call your Treasury Secretary in the morning.
Complicated and risky
Citigroup says CLX is based on six indexes. It’s still in the planning stages, but it won’t put the firm at risk. Citi’s considering building it at the request of customers it considers sophisticated enough to use CLX wisely. Citi just wants to make a market in CLX. It will buy when there are no buyers, sell when there are no sellers. Citi says its role will be neutral. They may even bring other brokerages in to spread the risk.
Sorry, but the CLX sounds a lot like what got Wall Street into trouble in the first place. Complicated derivatives, including collateralized debt obligations, synthetic CDOs and credit default swaps, ripped apart balance sheets and drove financial institutions such as Citigroup into the arms of taxpayers.
Those are loons, my friend. If you’re from the south you wouldn’t recognize them because in winter loons molt to a nondescript gray plumage, rarely call, loses the red in their eyes and fishes all day. Loons reserve their charisma for the North Country they symbolize. We do however have about 60 pair of swans swimming around that stay year round but none of them are black.
As you know, black swans are counted in my signature.
Those are loons, my friend. If you’re from the south you wouldn’t recognize them because in winter loons molt to a nondescript gray plumage, rarely call, loses the red in their eyes and fishes all day. Loons reserve their charisma for the North Country they symbolize. We do however have about 60 pair of swans swimming around that stay year round but none of them are black.
As you know, black swans are counted in my signature.
Yes, I was making a reference to your sig. I live in Wisconsin, so I know my loons. Have many tasty recipes.
The image of banks locking their doors to keep customers from making withdrawals during a bank run is what immediately came to mind when we heard that Citigroup was telling customers it has the right to prevent any withdrawals from checking accounts for seven days.
“Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change,” Citigroup said on statements received by customers all over the country.
I have seen this on 4 different web sites.
Is it an April Fool’s joke?
Smile. The seven day rule applies only to certain types of accounts. If this is true then people will be fired over this nationwide blunder.
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