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The Fed bought Treasuries to prop up the primary dealers.

 

http://wallstreetexaminer.com/2009/05/11/s...sional-edition/

 

 

Doc,

 

do you have any track record for your stock reports? About your stocks picks, short and intermediate moves etc? I'm not talking about a month or two, but rather years? Because its "history" so maybe you may share it with us? It would be great.

 

I'm a little bit afraid of any paid stocks newsletters or stock reports. The most common explanation for NOT buying any newsletter is that, if the author is right about his forecasts then why he is not at the Bahamas island or anything like that and sippin his favourite drinks and eatin his favourite snacks? If he is right then he would be a millionaire, even started with 10k$.

 

BTW, 30 days trail is, well, not enough. I'm NOT asking for longer trail, I would rather prefer "track record", NOT just posted on this board (NOT your daily comments, rather track records for your reports).

 

~20$\mth is nothing, but its always something:)

 

Just for the record, I'm a subs of your FED, money supply report.

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Massive defaults. For most of the past 50 years, the loss rate on all bank loans has stayed well under 2 percent. The Fed estimates that over the next two years the loss rate could reach 9.1 percent. You know all those historical comparisons that end with "the worst since the Great Depression"? Well, 9.1 percent would be EVEN WORSE than during the 1930s. Still looking forward to a soft landing or a quick recovery?

 

The Fed projects that the median loss rate could hit 8 percent on mortgages, 10.6 percent on commercial real estate loans, and 22.3 percent on credit card loans. A number of banks that made riskier loans face loss rates that are much higher. Banks can't just absorb losses of that magnitude and briskly bounce back. To survive, they'll have to sell assets, hoard cash, curtail lending, and simply wait it out. None of that generates economic growth.

 

http://www.usnews.com/blogs/flowchart/2009...rent-fixed.html

Why the Banks Still Aren’t Fixed

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The rush to raise capital continues today.....

 

WFC announced it raised $8.6 billion, which is more than it originally set out to raise. The bank was told by regulators last week that it needs to come up with $13.7 billion in capital.

 

SCBT announces offering of 1,150,000 shares of common stock

 

CPT - Camden Property prices 10.35 mln shares at $27.50

 

SL Green Rlty announces it has commenced a public offering of 14.5 mln shares of common stock

 

GLG Partners announces $180 mln aggregate preincipal amount of convertible subordinated notes due 2014

 

The Bank of New York Mellon announces $1 billion common stock offering

 

To be continued.....

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buy your hot bank stocks....before they rocket....

 

 

KeyCorp shares fell 43 cents, or 6.2 percent, to $6.54, after the Cleveland-based bank said it will sell up to $750 million of its common shares. The bank must increase its capital levels by $1.8 billion to satisfy the findings of the government's stress tests, the results of which were announced late last week.

 

.....

 

Minneapolis-based U.S. Bancorp, which received a $6.6 billion investment from the government, said it will sell $2.5 billion of its common stock. The bank may also offer medium-term notes. Its shares fell $1.29, or 6.3 percent, to $19.25 in afternoon trading Monday.

 

Virginia-based Capital One, which received $3.55 billion from the government, announced plans to sell up to 64.4 million shares at $27.75 a share for gross proceeds of $1.79 billion. The offering price is an 11.5 percent discount to the stock's Friday closing price of $31.34. Shares dropped $3.52, or 11.2 percent, to $27.82.

 

Southeast regional bank BB&T said it will sell $1.5 billion in common stock, and will also cut its dividend by 68 percent to 15 cents to save $725 million annually. The North Carolina-based bank received a $3.1 billion investment from the government last fall. BB&T shares fell $1.43, or 5.4 percent, to $24.90.

 

JPMorgan Chase, Goldman Sachs Group Inc., MetLife Inc., American Express, and trust banks State Street Corp. and Bank of New York Mellon Corp. were among the other banks the government did not ask to raise more capital.

 

Among those banks that do need to raise funds, Bank of America needs $33.9 billion, Wells Fargo & Co. $13.7 billion, GMAC LLC $11.5 billion, Citigroup $5.5 billion and Morgan Stanley $1.8 billion. Regional banks Regions Financial Corp., SunTrust Banks Inc., Fifth Third Bancorp, and PNC Financial Services Group Inc. also need to raise funds.

http://finance.yahoo.com/news/Bank-stock-o...f-15202753.html

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hey, doc, when do you figger the next long term update will roll off the press? no pressure or anything--i know you're a busy man.

look_out_below.jpeg

 

 

They come out usually the first Monday of the month. The last one was last Monday. The next one is due June 1, but will probably be late because I will be traveling that weekend. Nothing has happened since last Monday that would change anything.

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The Big Lie: Stress Test Optimism Just Wall Street Propoganda, Former Bank Regulator Says

 

Results of the stress test brought a collective sigh of relief from Washington D.C. to Wall Street Friday, and stocks were rallying again on a growing sense the financial crisis has past.

 

Don't you believe it, says William Black, an Associate Professor of Economics and Law at the University of Missouri - Kansas City.

 

"It's in the interest of the financial community to send this propaganda out," Black says. "It's remarkable not that they do it but that it still works."

 

In other words, this isn't the first time we've been told "the crisis is over" and that "banks are well capitalized" - and probably won't be the last.

 

The professor and former financial regulator foresees another wave of foreclosures and future bank losses of more than $2.5 trillion vs. the government's $599 billion estimate.

 

Simply put, the stress tests weren't strong enough to be considered "wimpy," Black says. Furthermore, Fannie Mae, Freddie Mac, AIG and IndyMac were deemed to have "passed" much more stringent government stress tests before their respective failures, he notes, recalling the grim history:

Fannie and Freddie: In July 2008, Treasury Secretary Paulson testified that Fannie and Freddie were "adequately capitalized" under the test. In August 2008: "even in [Freddie's] most severe stress tests, [show] losses ... less than $5 billion." Actual losses: 20 to 40 times greater.

AIG: "It is hard for us, without being flippant, to even see a scenario within any kind of realm of reason that would see us losing one dollar in any of those [CDS] transactions." AIG claimed in 2008 "Using a severe stress test ... losses could go as high as $900 million."
 Actual losses: 200 times greater.



IndyMac: Sold over $200 billion of "liar's loans." Actual losses: 160 times greater than its tests.

Rating Agencies: Their stress tests gave AAA ratings to toxic waste. Actual losses: more than an order of magnitude greater.

 

http://seekingalpha.com/article/136982-wil...ry?source=yahoo

William Black on the Greatest Bank Boondoggle in History

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They come out usually the first Monday of the month. The last one was last Monday. The next one is due June 1, but will probably be late because I will be traveling that weekend. Nothing has happened since last Monday that would change anything.

oops. i missed that one. last week i was working 14-hour days, so i didn't catch all that was coming down the stoolie sigmoid.

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