Banks are being propped up by the Fed, so Soros is wrong

http://www.bloomberg.com/apps/news?pid=20601213&sid=aNR3f9WE2L9s&refer=home

www.themarketchatter.blogspot.com

Normally I wouldn't say anything, but I can't believe this blatant fear mongering just to prop up a short position. He missed his chance to cover. His bet, aimed at financials, is a classic mistake of "betting against the federal reserve."

 

I hate to break the news to you and mr. blogger but Soros has made a massive fortune betting against Central Banks around the world.

and btw, this is a bear mkt rally

 

Buddy as of late August 2008 you were still denying we were in a recession. Apparently you had no clue as to the condition of the banking system at that point, but now just a mere 8 months later your so smart that not only do you know the banks are fixed but what Soro's intentions are too. Pretty good learning curve.

 

Banks are insolvent.

The FED will be insolvent when this all said and done.

Either they print dollars until we are using them for firewood. Or they cry uncle, and the government has to cut its budget by 50%.

There is no way out of this trap.

 

Are you suggesting the US is going to move to a wooden currency?

 

See, bulls win for now. Show me new negative news, b/c the worst has already been priced in, and <i><b>that's what makes a trough.</i></b>

 

Yes that would have been prior to any release of negative GDP growth. Notice what strikes me the wrong way about Mr. Soros' comments isn't that he's wrong about GDP contracting this quarter, it's that we contracted in the first two months and after that expanded a bit. The "fear mongering" is what bothers me, and I believe he's wrong at this point.

 

I've been paid several grand to determine yes or no to this. There are some insolvent, I'll give you that, including WFC and BAC, but there are also other banks that have adequate capital. Lumping them all together is the problem. It's done on a case by case basis. Some are, and as I said, I'll give you that, but some aren't. Using a broad swath to simply state "they're insolvent" is what the problem is, and I already know which banks won't pass the stress test, b/c they are already undercapitalized.