As many as 1,000 U.S. banks may fail

I think the context is quite obvious - short equities, and in particular, financials.

Maybe one reason why the author is posting on Elitetrader, and not on a yacht, is that massive government interference (interest rate cuts and bailouts) have the potential to reinflate the debt bubble that began to leak in early 2007.

Therefore it's been a difficult ride at times over the last 2 years to hold short positions in equities.

 

You're looking at what they've shut down so far.

Did you read the article? If you had, you'd see that by the projections of those inside these figures.

"Problem Banks

The FDIC classified 171 banks as “problem” in the third quarter, a 46 percent jump from the second, and said industry earnings fell 94 percent to $1.73 billion from the previous year. A new report may be released this month.

As many as 1,000 U.S. banks may fail in the next three to five years from mounting losses on commercial real-estate loans, RBC Capital Markets analysts said, almost double the one-year tally at the height of the saving-and-loan collapse. Most of the failures may occur at banks with less than $2 billion in assets."

I doubt they have a reason to inflate the bad news at this point.

 

i think the man speaks the whole truth and nothing but the truth!

 

"Owners of capital will stimulate the working class to buy more and more of expensive goods, houses and mechanical products, pushing them to take more and more expensive credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks, which will have to be nationalized, and the State will have to take the road which will eventually lead to communism"


Karl Marx, Das Kapital, 1867

 

Found this on the web tonight:

When We Talk About “Banks” Just What Are We Talking About?

According to the FDIC there are nearly 8,300 banks in the United States. However, if you look at the Federal Reserve’s report on consumer credit, you will note that banks provided at little more than a third of the total loans. A quarter of all consumer credit was provided by securitized pools, so-called “asset-backed” securities. If you look at mortgages on 1-4 family residences, once again you will see that banks provide less than 30% of such mortgages and that securitized pools represent over two thirds of all mortgages outstanding.

We have only reviewed two categories of debt, but you get the picture. If you consider commercial loans, then the nearly $2 trillion commercial paper market and public debt markets come into play and are outside of most all commercial and savings banks.

So who are the lenders besides the 8,300 “banks?” They are insurance companies, money market funds, brokerage houses, hedge funds, off-shore banks, and governmental funds. In addition these lenders are GE, GMAC (remember those Ditech commercials), pension plans, and federal, state, and local governments.

The political aspect of all of this is that it is a lot easier to harangue ten or twelve bank CEOs and pressure regulators to harangue the rest of us bankers than it is to deal with the reality of the marketplace of lenders.

 

One interesting thing to note about this post is that the quote is dated 1867, more than 40 years before the creation of the Federal Reserve.

 

It is all in the way that you describe things.

Try this texrex.

"California creates 30,000 jobs.
The state was to issue 50,000 pink slips tomorrow but was able to reduce the figure to ONLY 20,000 thereby creating 30,000 jobs"

I bet you are feeling better right now texrex.

 

somebody dig up ole Karl and tell the glorious bastard he was right all along

 

Some people on Snopes seem to think this is fake. I can't seem to find anything to verify it. Does anyone have a link to this quote that proves it's legit?

 

now you go and ruin everything.