Nor suprise here. Banks not only have a ton of bad debt, but their business models don't work anymore. It will be a long time before banks make serious profit again.
I just read that GM is cutting retiree health benefits, eliminated their dividend, and taking other drastic actions. All I can say is it's about time. It's do whatever it takes to survive time.
charlie:
I agree with your assertion. I think this USBank information will be a shock to the market however. USBank is consistently rated one of the more "conservative" banks and one that held "little" toxic debt.
this info is important, as we're seeing that all the banks have cracks.
""While the company has ample liquidity to meet its 2008 funding requirements, it is taking additional measures to bolster liquidity to protect against a prolonged U.S. downturn."
I think it's the first time I've heard any company say "prolonged."
Tangentally, I get a little confused by the to/from (vs. from/to) style that the Journal adopts for particular illustations. Which is it? We don't know because the Journal sees fit to flip from one to the other in the space of a paragraph change:
Return on equity, an important measure of profitability, slid to 17.9% from 23%.
Net interest margin edged up to 3.61% from 3.44%.
The bank tripled its credit-loss provision from $191 million a year earlier to $596 million, citing "continuing stress in the residential real estate markets, including homebuilding and related supplier industries, driven by declining home prices in most geographic regions," as well as "current economic conditions and the corresponding impact on the commercial and consumer loan portfolios." The provision rose 23% from the first quarter.
Jeepers, could y'all make up your frikkin' minds? Build a style guide and stick to it, please.
The video is great, see how he takes apart some of the anchors on CNBC.
"If you're blaming all this on short sellers, then you should get another job". LOL.
President George W. Bush will hold a news conference on Tuesday at 10:20 a.m. to discuss the U.S. economy, including recent steps to stabilize the housing and financial markets, the White House said
Nor suprise here. Banks not only have a ton of bad debt, but their business models don't work anymore. It will be a long time before banks make serious profit again.
And when that profit materializes, it will be at a much lower number than the 2005-6 years.
President George W. Bush will hold a news conference on Tuesday at 10:20 a.m. to discuss the U.S. economy, including recent steps to stabilize the housing and financial markets, the White House said
Well THAT will certainly be received like the cavalry coming over the hill to rescue us.
Good morning. US Bank is actually one of the best banks and it just shows how everyone has issues with their books. In an inflated market, everyone accepted the current prices or they lost business. At this time, I am not looking for finanical companies that will fail but that will make it through this. I suspect that I will be able to buy the possible winners for about 4 time book. So.. if anyone has ideas about strong banks, let me know. Cheers.
Yeaning to learn is right this was the last holdout for those who "had to own financials" at these "bargain" prices. This disclosure shows that even the most conservative banks will be under pressure for some time.
I understand that the order of the words to/from make no syntactic difference. But I've always thought the convention was from-to, and I quickly read numbers that way. In the last few years, though, to-from had become more common, and I slow down to check, at least for the first few instances in an article. But when the author shifts from one to the other in the same piece, dissatisfied I now am feeling.
The banks should give depositors free stock to get their money. Bank stock is like a magic ring in your cereal box - a free and fun but worthless incentive.
A long time ago, I think shareholders were responsible for coming up with new money if the firm when under water on stock price. Perhaps we should return to that LOL.
My first language was German, and in German word order isn't important. the "cases" tell you movement... so I guess I just don't notice the switch.
In german you could say:
I throw the ball to her
I throw to her the ball
To her I throw the ball
To her the ball I throw
The ball I throw to her
The ball to her I throw
and so on. obviously some of those are odd in English.
USB is the bank, besides Wells Fargo, in which Buffett has the largest amount invested. Over a billion or over two billion at last count. I'd like to hear Buffett on the bank crisis.
I was just about to post that Bush would no doubt be trying to use the financial and oil situations to push for more drilling. I guess I didn't need to bother, it's so predictable. Now he's fixated on that, no matter that it will not help the US, only the oil companies' bottom lines.
Will we have to listen to him weekly about this as we did his "sell Iraq" speeches? Please, can't he just go on vacation already.
YTL, thank you so much for solving a mystery. I took six years of German as a child and aside from observing that the verb will often be the last word in a sentence I never figured out a consistent order for assembling the sentence. The cases reduced me to jelly.
Maybe the banks could give out stock options with your deposit to attract money, just like the dot coms did to attract talent. Outcome would be the same, I presume.
Yup. WFC and USB are the best banks. USB however is still quite expensive and will need to get cheaper before being that attractive. There is a trade off between price and crappiness. Buffett tends to pay up and buy the best and that has worked out well for him. In hindsight, the best returns have always been from buying the crappiest bank that still manages to survive. In 1990, that was Citibank. This time around, it could be something like Fifth Third (FITB) or Bank of America (BAC).
You can read all about this direct from the horses mouth- US Bancorp's most recent quarterly earnings call just came out. You can read the full transcript below:
Nor suprise here. Banks not only have a ton of bad debt, but their business models don't work anymore. It will be a long time before banks make serious profit again.
I just read that GM is cutting retiree health benefits, eliminated their dividend, and taking other drastic actions. All I can say is it's about time. It's do whatever it takes to survive time.
First!
charlie:
I agree with your assertion. I think this USBank information will be a shock to the market however. USBank is consistently rated one of the more "conservative" banks and one that held "little" toxic debt.
this info is important, as we're seeing that all the banks have cracks.
Did you catch this in the GM announcement?
""While the company has ample liquidity to meet its 2008 funding requirements, it is taking additional measures to bolster liquidity to protect against a prolonged U.S. downturn."
I think it's the first time I've heard any company say "prolonged."
Tangentally, I get a little confused by the to/from (vs. from/to) style that the Journal adopts for particular illustations. Which is it? We don't know because the Journal sees fit to flip from one to the other in the space of a paragraph change:
Return on equity, an important measure of profitability, slid to 17.9% from 23%.
Net interest margin edged up to 3.61% from 3.44%.
The bank tripled its credit-loss provision from $191 million a year earlier to $596 million, citing "continuing stress in the residential real estate markets, including homebuilding and related supplier industries, driven by declining home prices in most geographic regions," as well as "current economic conditions and the corresponding impact on the commercial and consumer loan portfolios." The provision rose 23% from the first quarter.
Jeepers, could y'all make up your frikkin' minds? Build a style guide and stick to it, please.
Reposting.
Don't Bail Out Fannie, Freddie: Jim Rogers
Don't Bail Out Fannie, Freddie: Jim Rogers - CNBC
The video is great, see how he takes apart some of the anchors on CNBC.
"If you're blaming all this on short sellers, then you should get another job". LOL.
We're all Alt-A now.
Does Whitney think Wachovia has a date with 0?
Meredith Whitney Cuts Wachovia on `Bleak' Prospects (Update3) - Bloomberg.com
President George W. Bush will hold a news conference on Tuesday at 10:20 a.m. to discuss the U.S. economy, including recent steps to stabilize the housing and financial markets, the White House said
Bush to discuss economy at news conference
| Reuters
Short Bucky!
Anonymous writes:
Short Bucky!
And long the Dong, Vietnam looks better everyday.
Nor suprise here. Banks not only have a ton of bad debt, but their business models don't work anymore. It will be a long time before banks make serious profit again.
And when that profit materializes, it will be at a much lower number than the 2005-6 years.
President George W. Bush will hold a news conference on Tuesday at 10:20 a.m. to discuss the U.S. economy, including recent steps to stabilize the housing and financial markets, the White House said
Well THAT will certainly be received like the cavalry coming over the hill to rescue us.
Inflation at fastest pace in over 25 years
Business, financial, personal finance news - CNNMoney.com
Will the FED raise rates... i think not for this year and they may lower yet.
JP writes:
Well THAT will certainly be received like the cavalry coming over the hill to rescue us.
Once correction. rescue = trample.
Good morning. US Bank is actually one of the best banks and it just shows how everyone has issues with their books. In an inflated market, everyone accepted the current prices or they lost business. At this time, I am not looking for finanical companies that will fail but that will make it through this. I suspect that I will be able to buy the possible winners for about 4 time book. So.. if anyone has ideas about strong banks, let me know. Cheers.
And it gets better:
Bush will also discuss offshore drilling and the annual government spending bills pending in Congress, said White House spokeswoman Dana Perino.
As if it's an oil crisis.
When will this party boy realize that it's time to stop taking care of his oil buddies and start taking care of the country?
What? A run on deposits at US Bank?
Bank run! Bank run! Bank run!!
JP
"Well THAT will certainly be received like the cavalry coming over the hill to rescue us."
Yeah Custer's.
Cheers,
our leerless feeder... oh please.
kurtyboy:
not sure I understand your confusion. seems pretty clear to me.
the position of "to" in relation to "from" is of no importance. The words designate the movement.
Thus, these mean the same thing:
Receipts slid from $396B to 186B
and
Receipts slid to $186B from $396B
Yeaning to learn is right this was the last holdout for those who "had to own financials" at these "bargain" prices. This disclosure shows that even the most conservative banks will be under pressure for some time.
-Whitney cuts Wachovia, says shareholder prospects bleak
Oppenheimer's Whitney cuts Wachovia on bleak outlook
| Reuters
They call it screwed where I come from. Today's whipping boy, bring your club.
The confessional is beginning to resemble one of those college-style "how many people can we stuff in a phone booth" activities.
The Chimp speaks.
What was Dr. Johnson's observation about the talking dog?
YTL:
I understand that the order of the words to/from make no syntactic difference. But I've always thought the convention was from-to, and I quickly read numbers that way. In the last few years, though, to-from had become more common, and I slow down to check, at least for the first few instances in an article. But when the author shifts from one to the other in the same piece, dissatisfied I now am feeling.
The banks should give depositors free stock to get their money. Bank stock is like a magic ring in your cereal box - a free and fun but worthless incentive.
A long time ago, I think shareholders were responsible for coming up with new money if the firm when under water on stock price. Perhaps we should return to that LOL.
"dissatisfied I now am feeling."
ROFL. touche.
got me you did.
My first language was German, and in German word order isn't important. the "cases" tell you movement... so I guess I just don't notice the switch.
In german you could say:
I throw the ball to her
I throw to her the ball
To her I throw the ball
To her the ball I throw
The ball I throw to her
The ball to her I throw
and so on. obviously some of those are odd in English.
USB is the bank, besides Wells Fargo, in which Buffett has the largest amount invested. Over a billion or over two billion at last count. I'd like to hear Buffett on the bank crisis.
I was just about to post that Bush would no doubt be trying to use the financial and oil situations to push for more drilling. I guess I didn't need to bother, it's so predictable. Now he's fixated on that, no matter that it will not help the US, only the oil companies' bottom lines.
Will we have to listen to him weekly about this as we did his "sell Iraq" speeches? Please, can't he just go on vacation already.
Oh lord it's a Bush/Bernanke split screen. Please someone take a screen shot, quick (CNBC). Would make a great textbook illustration for the future.
YTL, thank you so much for solving a mystery. I took six years of German as a child and aside from observing that the verb will often be the last word in a sentence I never figured out a consistent order for assembling the sentence. The cases reduced me to jelly.
Maybe the banks could give out stock options with your deposit to attract money, just like the dot coms did to attract talent. Outcome would be the same, I presume.
man i thought usBank was immune?! i was going to move all move accounts there....now there arent any safe banks except the bank of sealy
Yup. WFC and USB are the best banks. USB however is still quite expensive and will need to get cheaper before being that attractive. There is a trade off between price and crappiness. Buffett tends to pay up and buy the best and that has worked out well for him. In hindsight, the best returns have always been from buying the crappiest bank that still manages to survive. In 1990, that was Citibank. This time around, it could be something like Fifth Third (FITB) or Bank of America (BAC).
You can read all about this direct from the horses mouth- US Bancorp's most recent quarterly earnings call just came out. You can read the full transcript below:
U.S. Bancorp Q2 2008 Earnings Call Transcript -- Seeking Alpha