Folks,
You need to ask yourself this question after Wells Fargo announced today that they expect to see record earnings for the 1st quarter.
If Wells is really is doing this well then why in the hell did the taxpayer have to fork over tens of billions of dollars to this bank just a few months ago?
I call bull**** on this "announcement". With all of the mark to market changes combined with the shadow foreclosure inventories, I think this is nothing but a cooking of the books. The fraud rolls on ladies and gents.
If things are so great right now at Wells Fargo then why doesn't the CEO of the bank go on CNBC today and open up their books? Why are are we still "kept in the dark" in terms of what their balance sheet really looks like if things are booming?
I would love to see banks do well, however if you REALLY are profitable, don't steal billions from the taxpayers of this country! None of this makes any sense folks.
I am sick and tired of the pigmen gaming the system. Hey Wells: If you are this profitable: Gimme my damn money back!!!!
Shadow Inventory
Below is a great example of the games that the banks are now playing:
As you can see above in the San Francisco area, 51,602 properties were foreclosed on in the Bay Area since 2007. However, only 30,823 have been resold to date. These numbers don't make sense right? Whats going on here is in classic pigmen style, the lenders and the state enacted a "moratorium" on foreclosures which has allowed them to show that the shadow inventory has "officially" been "burned off(yeah right).
The reality here is they are just simply taking advantage of this moratorium and holding onto 19,800 empty homes and not including them in the foreclosure stats. As a result, expect to see another flooding of foreclosures hitting the market in the San Francisco area in the very near future. If you live in this area, don't get suckered into buying thinking that all of the foreclosures have almost all sold.
There will be plenty to choose from when they release their next load of toxic waste onto the housing market.
These are the types of games that are going on right now guys and gals. I don't trust these earnings by Wells Fargo one bit. If they are accurate then we have just been totally screwed over by our government and the pigs on Wall St.
If we are bailing out companies that don't need to be bailed out then we need to hold people accountable for this type of blatant fraud!
History Repeats Itself
We have seen speculative manias like this before when we thought the worst was behind us. The mirage that things are fine is a very strong one that's been finely crafted by Washington and Wall St.
The reality here is the economy is still awful. Walmart missed big this morning and the jobless claims were -650k. -400k is considered to be recessionary. There were also upward revisions to previous month claims.
We have seen viscous bear market rallies before. Here is a great example of one below:
8 comments:
It's getting unbelievably depressing...
Minton
Yes it sure is.
The 10 year is up big today as well. Yields are now at 2.95%.
Credit market is shaky. The 10 year auction today was lukewarm. I've seen stronger auctions.
If yields keep rising this rally is going to disappear. I think the credit market is why you are seeing a pullback here.
great post Jeff. of course its bullshit. if its not transparent and proveable, then its an illusion; much like those dollars in our wallets.
I have been in default since August last year, and had some automated prompts but no forclosure notices. The place is underwater at least 100k, and I anticipate may overbuilt suburbs in Vegas and inland california and Arizona are very similar. WAVES of loans that were or are counted as "seasoned" or not in default (which really are) and other 6 months + default notes, all over 50% underwater. Its a disaster. Remember allthose suburbs advertising mid 200's or mid 400's? check out youtube videos:
Housing Depression: The Truth Behind the Statistics Part 1/5 an example of one of those 400k+ suburbs; its condition today.
http://www.youtube.com/watch?v=nzACsGrumEU&feature=channel_page
also:
http://www.youtube.com/watch?v=SBswYjzU_MQ&feature=channel_page
Would-be homebuyers find themselves in ownership limbo Squatters using false leases approved by courts to tie up forclosure buyers, using "soverignty" claims by religious justification; scam based in nevada spreading to so cal.
Basically; they are covering up Trillions of $ losses and claiming victory, by not forclosing on these losers;
you are right... its total fraud. Its just a question of when all these losses are realized and they "restate" earnings.. they are so good at that anyway.
"it is the doom of men that they forget.."
Merlin, Excalibur
Oh yeah. I forgot to mention all the HOA fees, insurance, and home repairs that have to be made on these forclosed properties that get looted or damaged. thats ALL on the banks.. out of pocket cost recoveries wont happen for several years, if ever through the bogged down court system.
In other words, the Holy Wells Fargo fuelling this rally are not ccounting the huge quere of expenses and shadow forclosures.
If you guys would focus on the week ahead and not the end of the world you can make great money in this market (both ways)...FAZ short from $100-10 in 23 trading days.
JD
Thanks
Great points.
I am sorry to hear about your default but happy to hear you have had a free place to hang for awhile!
Its a total mess. People have no idea how bad this disaster is. I think everyone just hopes this will all just "go away".
In minor recessions it usually does after awhile. This financial heart attack is going to last a generation.
Good luck with your house and I hope everything works out.
Anon
Focus on the week ahead? You mean try and guess which bailout will be announced next on what day?
Good luck. If you found a solid trading strategy that works in this environment more power to you.
I know a lot of guys that are just sitting on the sidelines right now. I am one of them.
The fundementals are too bad to buy this market. I would rather wait out the run ups and short this casino. I picked up some SDS at 70 a week ago. Down 5% on the position.
I would rather trade based on fundementals. Some can time these long trades based on hope. TO me thats just another form of gambling. I would rather take the short side because I think the market sucks.
Day trading is something very few can do sucessfully. ASk any Wall St pro. Very few can do it long term. Just my 2 cents.
I hope you found something that works for you.
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