This story was on page 26 of this week's BW. After reading it, I tore up the rest of the issue and threw it in the garbage where it belongs.
Thank god I got BW as a gift subscription. There is no way anyone should actually pay to read this crap.
ARE BANKS PLAYING IT TOO SAFE?
www.businessweek.com/magazine/content/09_36/b4145026665183.htm
The author probably just graduated from journalism school this past July. He is completely in the dark with regards to the economy, the credit crisis, and banking in general. With investment advise like this who needs Madoff or Stanford?
The reason that most banks and financial institutions are hoarding cash and capital at the moment is because what is happening at the moment is just a temporary blip up. The bank executives are hunkering down because they were severely taken of guard by what happened last year. This is just a small upturn in a secular bear market in credit, stock market, and overall economy.
The author just wants Wall Street to re leverage up again so that the economy can further recover.
He makes the argument that they banks are too conservative and that this might very well factor in on any non recovery in the overall economy.
The leverage in Wall Street has already risen this year. From looking at CDS prices insuring debt, people are starting to get worried again about leverage.
I am thinking the author doesn't really do a lot of reading or researching in his spare time.
bloomberg.com/apps/news?pid=20601087&sid=a_XpcU5pY0f4"
www.bloomberg.com/apps/news?pid=newsarchive&sid=azWtGb.I1OSw"
You would think BW would actually do the unthinkable and hire journalists who know their subject matter, but then again someone has to keep unemployment down, we all know the government cant.
This author is flat out dumb. I am throwing the next 20 issues straight in the trash.
No comments:
Post a Comment