Thursday, October 15, 2009

But There Aren't Any Earnings.........


Global Investor: Bank “Earnings” A Sham
By Eric Roseman
The phony results now underway for Q3 bank earnings continue to mask the greatest bear market rally or con-game in history.
Despite great numbers for the largest banks since Q2, financial sector intermediation remains severely impaired, small businesses can't obtain financing while consumer installment debt has markedly declined through a combination of debt reduction and rising defaults. Yet the banks have reported a miraculous recovery in bond trading revenues over the last several months – while still harboring toxic assets, rising non-performing loans and for smaller banks, more FDIC bailouts.
The latter, by the way, is broke again and requesting urgent funding from the Treasury.
I've got no trust and no faith in the stock market. The banks are rigged and the accounting system is a joke. This is neither the time nor place to make new, substantial equity-related investments in the U.S…following the biggest con-game in history, which has deceived the poor, unsuspecting public into believing things are improving since March.
For all intents and purposes, they are not.

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