Weak earnings from BAC and GS and the street it is acting like it is a surprise, REALLY!
Too optimistic folks are about the banks when they are stuck in a dirt for awhile. There is a reason why the banks are not lending money and it is not credit related it is because revenue streams are drying up. I believe we will go through another period of bank consolidation because they are just not solid enough to survive wall street expectation in this weaker economic climate.
GS expenses fell over 23% and they still missed revenue targets because trading revenues were down 50%. Cut in half why? it is harder to trade and they doing what they should DON'T trade in this type of market, I have been saying this for awhile on this blog.
Lets see if they can hold the 1300 level today. that is a Value area to look at.
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