If you look at the people out of work, and not just those out of work and actively looking, then I believe the unemployment rate is already 16%. I don't study the numbers in detail, but I think the real rate is the U6 figure that is published. I am sure someone can provide more details on this.
Its funny how she's like buy BAC its cheap, and at the same time predicting 13% unemployment. I don't know how she reconciles those two.
If I recall correctly she said earnings for the second quarter will be greatly benefited by the huge number of refinancings and by some favorable tax changes (MTM). Then she expects earnings to get much worse for the banks later this year since the refi wave is over and the consumer is pulling in spending and banks are greatly reducing credit to consumers on credit cards. :eek:
i think it was said the trading that accounts for the supposed "1.4 billion profits" for Gs recall the rally in march that lifted the market and the sudden rally in commodities. "concidental"?
Not to argue, but to illuminate a point, albeit anecdotally. Banks won't refi houses cuz appraisals come in too low, due to the precipitious drop in house values. So there goes that idea.
Because if you've listened to her analysis, she's clearly saying that you should buy banks on the great government ride of the century. She's not saying they're attractive investments. She's saying they won't be allowed to fail and will continue to remain profitable on taxpayer/government dollars. In actuality, she's telling you the game is rigged so don't fight it.