Mark to Market Rules-

Friday, April 3, 2009
FASB Rules Won't Make Banks Money

FN: Yup. Reality vs Fantasy. Reality always wins… eventually.

Bank Stocks Won’t Get Lift From FASB, Goldman Says (Update1): “The relaxation of fair-value accounting rules won’t prevent bank shares from falling because growth in bad loans is accelerating, according to Goldman Sachs Group Inc.

“Our core view is that banks will not bottom until underperforming asset growth decelerates,” Richard Ramsden, a New York-based analyst at Goldman Sachs, wrote in a report today. “Loans are going bad faster than banks earn money.”

…

Delinquent loans are increasing at a 3 percent annual rate industrywide, compared with a 2.5 percent rise in earnings before setting aside money for bad loans, Ramsden said.

…

U.S. regulators may force Bank of America, Citigroup and at least a dozen of the nation’s biggest financial institutions to write down as much as $1 trillion in loans, twice what they’ve already recorded, based on Federal Deposit Insurance Corp. auction data compiled by Bloomberg.

Banks failing Federal Reserve evaluations of loans this month may be ordered to make sales worth as little as 32 cents on the dollar, according to FDIC data. That would be less than half of the 84 cents on the dollar the Treasury Department suggested was a possible purchase price. Some of the bank- insurance agency’s auctions brought 0.02 cent on the dollar.

Lower valuations would lead to new writedowns and capital injections from the $134.5 billion remaining in the Troubled Asset Relief Program, Nobel Prize-winning economist Joseph Stiglitz said.”

Grammar

hehehehe- Yes I don't check back my grammar, my blog is on the fly :) Hehehehe

See I think too fast for my fingers to type so you have to decipher stuff:) if the words don't match :)


Anyways I have a new project working on, it is a time machine that I will use to go back in time and play the markets and lotto numbers from the future :)
That's my goal now- Time machine, I can't seem to locate the flux capacitor, if anyone has one I will pay alot for it :)

Have a great weekend

TRADE CALLS:

Hey just want to be very clear here I am in all the trades listed on the open play section on the blog and only those. I didn't take SRS as the market opened today as one of my rules is not to buy a stock when it gaps up and it did so I was waited and good thing because I got it @$40 with 1/2 lot.
Well I am definitely wrong here on the financials. I really thought the financials would have sold hard after the mark to market announcement but I am holding my guns here and think it will work, giving it a little room.
I will be neutral here till we touch that 850 area then I will be short or be a buyer @ 750. There is a good short we consolidate in this around for a couple of weeks. Who knows when this chop will be over but seems like the volume is dropping off day by day, which means we are almost at an end.
This morning I said I think we will make one more high before we head south but I dont think the south will be close to that 665 level.

Trade Call Update

AZO finally getting cracked- Took long enough - Lets see if they can close this below 154 today