Meredith Whitney was on cnbc this afternoon( March 10, 2009 ) and gave her comments on the current financial crisis.
- Credit Cards will be the next credit crunch
- At least 2 trillion of credit card lines to be cut by 2010
- Bank credit card portfolios will not be profitable in 2009, might even lose money
Would you be buying the bank stocks right now?
- Goldman Sachs ( GS ) in the $70's yes, $100's no
- There is a trade here, but a trade alone...I think you could probably make money getting long some of these stocks. We will have to see what they do as far a mark to market in April.
Citigroup ( C ) - they don't make money in any of their businesses - you see Citi up 28% today but its only $0.28 cents. I am skeptical of these relief rallies.
Citi will be forced to sell their crown jewels
Mark to Market accounting
The damage is already done....if the market comes back, they don't get the benefit to write their assets back up. Mark to market doesn't really matter right now.
TALF - Is TALF going to be enough? They are trying to entice the private sector to come back into the market, private capital has to have sweet terms to get back into the stock market.
With these bank stocks - you could see them go up on earnings in the first quarter because of a head fake on the mortgage moratorium.
View all of Meredith Whitney's comments right here.
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Showing posts with label mark to market accounting. Show all posts
Showing posts with label mark to market accounting. Show all posts
Tuesday, March 10, 2009
Thursday, November 20, 2008
Art Cashin CNBC 11/20/08 - Stock Market Comments
Art Cashin of UBS was on CNBC, 11/20/08, and gave some comments and opinion on the stock market. You can find all of Art Cashin's comments HERE
Art Cashin November 20th, 2008:
We have to take a look at the mark to market accounting rules because obviously nothing else is working right now, they are zeroing in on Citigroup C and other banks.
Today, we need to see if the Dow Jones tests and holds the Oct 10th intra day low level of 7773, see if it produces a meaningful bounce, if it breaks, you are probably looking at some cascade selling that follows. But for now, let hope 7773 on the Dow holds today.
For more updates on the Stock Market, visit, http://daytradingstockblog.blogspot.com/
Art Cashin November 20th, 2008:
We have to take a look at the mark to market accounting rules because obviously nothing else is working right now, they are zeroing in on Citigroup C and other banks.
Today, we need to see if the Dow Jones tests and holds the Oct 10th intra day low level of 7773, see if it produces a meaningful bounce, if it breaks, you are probably looking at some cascade selling that follows. But for now, let hope 7773 on the Dow holds today.
For more updates on the Stock Market, visit, http://daytradingstockblog.blogspot.com/
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