Woah… talk about the right hand not knowing what the left hand is doing…

This is either a case of serious schizophrenia or a serious case of talking out of both sides of your mouth… yet again…or just plain and simple self serving, criminal negligence and/or incompetence. May I remind you this guy was knighted by the Queen of England for the role he played in arranging the world’s financial system the way he did…

First check this out, in particular read this paragraph I wrote not last week: “But, more importantly, this is the guy that knows that the stress test is a sham. He knows that most of the big banks need recapitalization. He knows that unless recapitalization happens now that bank stocks are enjoying a rebound, it may not happen again and C, BOA, WFC and some other big banks may go under for good.

Then take in your daily dose of bull-shit from the old man himself here:

http://www.bloomberg.com/apps/news?pid=20601087&sid=a25ocYh4V5vI&refer=home

In particular, this paragraph: “Greenspan’s comments suggest he sees a bigger capital shortfall in the banking system than reflected in regulators’ stress tests on the 19 biggest U.S. lenders.

This just two days after Bank of America issued a wad of shares unto the public to raise a dozen Billion dollars. Now tell me I’m paranoid.

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2 Responses to “Woah… talk about the right hand not knowing what the left hand is doing…”

  1. Randall Arnold Says:

    Please tell me WFC does not belong in your list. That’s my bank, I love their service, and I own shares.

    Other than that, you’re not paranoid. 😉

    • guidoamm Says:

      Randall,
      Wells Fargo most certainly belongs on that list. This is a serious case of someone having to pull out a rabbit from some hat somewhere but most, if not all, the big financial names are insolvent. So far, accounting shenanigans allow them to keep up appearances in a gambit to allow them to raise more capital by foisting more shares on pension funds, institutional and retail investors.
      As things stand today, WFC, C, JPM and BAC need either a furious and quick turn up in real estate values, with a concomitant raise in the stock market as well as a fall in the cost of CDS on the alphabet soup of mortgage related derivatives they carry on their books.
      The good news is that purely from a statistical point of view, not all the big banks might fail. But it is difficult to see which ones at this point.
      What is certain is that our “leaders” are doing nothing to encourage transparency or fiduciary duty. Quite the contrary. And this, dear Randall, is not my opinion. This is fact.
      Thanks for stopping by.

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