Wasn't it the late Sen Dirkson who once said, "A billion here, a billion there, and pretty soon it starts to add up to real money."

How does that square with the notion that the market can remain irrational longer than you can remain solvent?

Just wondering...

The U.S. Securities and Exchange Commission will make public as early as June several enforcement cases involving subprime mortgage-related investigations, two sources familiar with the probes told Reuters on Wednesday.

Some U.S. SEC subprime probes nearing end -sources
| Reuters

A little fine, a slap on the wrist then back to ripping off the American public and investors, just like after the dot boom bubble.
Bank on it.

KeyCorp is a regional bank. "Out of footprint" means outside of their region.

Kind of like if you lived in California and speculated on property in Florida or Arizona. Stuff no sane person would do.

Isn't that exactly what a bank does everytime they purchase a securitized investment for their portfolio?

Dispersion of risk or creation of correlation were none previously existed....what ever you want to call it...securitization is IB fee generating BS.

Finally, an article calling a spade a spade, that is, the banks have been delusional.

I've been watching a couple properties here that can only be bank owned. After numerous teeny tiny price drops they are now approaching what they sold for one and a half years ago. An individual owner would have given up on these elephants months ago and walked.

The bank could have sold them last summer with a hefty price drop and maybe come close to breaking even.

Now, compared to current asking prices, they look like total turds on the MLS.

The banks are astoundingly bad at handling money.

"Miskin leaving the Fed after just a year and a half!!!"

Oh, so I assume he's going back to the wonderful land of Oz, to look for the wizard. Never mind. I am confusing him with those happy little Munchkins.

"Inflation expectations have remained reasonably well anchored so far, which is encouraging," Federal Reserve Bank of Minneapolis President Gary Stern told the Eau Claire, Wisconsin Chamber of Commerce in a speech.

REFILE-UPDATE 2-Rate hikes key to containing inflation-Stern
| Reuters

Dow Chemical Co., the largest U.S. chemical maker, will raise prices the most in the company's 111- year history because of surging costs for energy and raw materials used to make Styrofoam, pesticides and plastics.

The ``unparalleled'' increases of as much as 20 percent on all of Dow's 3,200 products are needed after a 42 percent jump in first-quarter spending on raw materials and energy, Chief Executive Officer Andrew Liveris said today. The increases take effect June 1, the company said in a statement.

Dow Raising Prices Most Ever as Energy Costs Surge (Update4) - Bloomberg.com

OK, Gary what ever you say.

Regionals financials crumbling...and Mishkin to walk away...

Priceless.

Cheers,

puravidavid writes:

Wasn't it the late Sen Dirkson who once said, "A billion here, a billion there, and pretty soon it starts to add up to real money."

The correct version of Dirksen's oft-misquoted line is: "A billion here and a billion there, and pretty soon I'll have real PAC money."

They also did a bunch of student loans - especially law schools. i bet those are looking pretty bad right now too

If the (outside of RE) CR contra-indicator still works, we need to go long bank stocks asap here.
O-Joe