the sky IS falling….
By my calculation, the two largest U.S. banks, Citi (C) and Bank of America (C), have over the last year lost roughly as much in market capitalization as is the current value of the other six U.S. banks combined.
To be specific, Citi and BofA have together lost $296-billion in market capitalization over the last year, while JPMorgan (JPM), Wells Fargo (WFC), Bank of New York (BK), Wachovia (WB), WaMu (WM), and U.S. Bancorp (USB) currently have a remaining combined capitalization of $283-billion. Staggering stuff.
Wow People…
one bright spot is that it looks like that wonderful stimulus package didn’t do shit. Credit Card payments were up when the money was sent out…
Tax rebates appear to be helping Americans pay down their credit card debt, according to a new report from Standard & Poor’s.
The rate at which obligors pay down their outstanding balances and determines how quickly investors are paid out under adverse conditions, improved 100 bps to 19.7% in May, a four-month high since January 2008, S&P said.
Tax rebate checks may have aided the improvement, along with more collection days in May compared with April.
More than 80% of the credit-card trusts tracked by S&P reported higher payment rates in May, and more than 40% of the trusts recorded payment rates exceeding 20%.
Delinquencies in the 30- and 60-plus-day categories were down 10 bps to 4.3% and 3.1%, respectively, while 90-plus-day delinquencies were unchanged at 2.2%.
I heard on the radio the other day they are waiting to see how this one does before they decide on another one. Could you imagine?
A corporate give-a-way laundered through personal checking accounts….
…and who said Bush wasn’t a smart fella?
DTB; Good to see young people show and interest in the economy, take it from a 40 year investor who has followed the economy, the future financial health of this country has never looked bleaker.
We all are losing our wealth at an alarming rate!
One has to realize that not all that amount was money really lost…. maybe virtually yes.
The money that was lost, was made up money. It never existed.
There was nothing of value in the loans they held; they overestimated their value, and eventually put them on their books….
It was as if you said: “since a man’s home is his castle, I live in a Castle. Since a Castle is at least worth a million bucks, you then told everyone who would listen, that you were worth a million dollars…
You weren’t. And you still own the same house you had, nothing changed. But now you are not worth a million dollars. Why? What changed? Everyone has now seen your house and knows its not a real castle….
This morality play mimics what really happened.
It went like this.
“If all these loans are paid at full amount, this package will be worth 20 million. I’ll sell it to you for 11 million. The sucker buying it, buys several deals and tells his buyer, If all these loans are paid at full amount, this combined package is worth 80 million.. I’ll sell it to you for 65 million…. And that buyer buys several and turns to his buyer……
The loans are still there. Most of America is still paying on what they owe; its just the value of those same loans carried on some books of banking institutions, need to be readjusted….
So you tell me…. should our money go to subsidize those fools who could not tell the difference between homes and Castles?
They knew all along, that they were trading in unprotected deregulated territory……
I am beginning to believe it is impossible to trust Republicans with managing money……
On the other hand, …. you can trust Democrats to pay as they go……. They are good for that….
On the other hand, … Republicans talk too much….
But the flip side of that is that Democrats get things done….