why steepest yield curve hurts banks

lite1067

Now we see what the author means after seeing C and WFC (and maybe tomorrow BAC)'s earning reports.

20110116_why_steepest_yield_cuve_hurts_banks.pdf (145.79 KB, 下载次数: 177)

2011-1-19 09:46 PM 上传

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HTER

ddd

Lite 好！

lite1067

Lite 好！
ddd 发表于 2011-1-19 22:21

    Peter 老大好。你最近非常准啊。

colderdown

I had a chat with a buddy from WFC 3 days ago. He said banks don't want your saving money, they want to lend you money, however, there is not much improvement in terms of borrowing demand. There are many reasons for this, but relatively higher borrowing cost is one of them. So far, QEII did not really help economy at all. Big Ben want to have wealth effect because of rise of equity market.  Stupid fool! For most people, equity market's rising have no or much less wealth effect comparing house booming. However, the housing price decline because of huge inventory, high unemployment rate, higher borrow cost, etc is a real deal. Yes, economy is doing better, we won't have 2nd crash in the near term. Then, my question is why do we need QEII since bussiness cycle is on positive track?

Anway, equity market will keep rising until one day people realize this is completely BS, then market will fall, then we will have QEIII, etc. At last, the only thing will be gone with wind is free market. We all want to live and work at Washington, at least, housing price there is rising. God bless America, in Big Ben, we trust.

Diver

The rally of equity market and commodities market does not help booming economy or housing market at all. This is obvious. The people who made profits from the rally of equity market and commodities market are overall Wall Street employees only. The retailers actually lose money as a whole.--Remember, this is not a win-win battle. In another direct word, the Wall Street as a whole, gain money from retailers as a whole; some retailers gain money from more other retailers. Most of retailers lose money in this market. So, silly Ben, how can you expect retailers as a whole will spend more money to boom economy?

I had a chat with a buddy from WFC 3 days ago. He said banks don't want your saving money, they want ...
colderdown 发表于 2011-1-20 01:26

colderdown

回复 6# Diver

"The retailers actually lose money in overall.--Remember, this is not a win-win battle. In another direct word, the Wall Street, in a whole, gain money from retailers, in a whole; some retailers gain money from more other retailers. Most of retailers lose money in this market. So, how can you expect retailers in a whole will spend more money to boom economy?"

I don't agree with this. In paper, most people are making money in market, but that is just in paper. Until the transaction done, it is just paper profit. Market is not a fixed system, at least in paper, it does not need to be winner's gain is from loser's loss. Well, let me give you a example. Let's say you have 100 share of AAPL, I have 99 share of AAPL, now I pay $500 to buy one share of AAPL from you. Now at this moment, your net worth on paper is 99X500, mine is 100X500. You see, we both win, on paper. Now, the key is if Lite will pay 500 per share to buy all of share from. If so, we both win in real money term. And then Lite needs to wait Cobra to apy 501 per share to him to make real money. It goes on and on, as long as someone willing.

Diver

Before you sell your stocks and pocket your real money, you do not make more money. But as a whole, we retailers still have not made more money, even Lite buys over all the stocks from you and me, even Cobra buys over all the stocks from Lite.

If you want to spend the profit money on paper, you are actually living on credit.

回复  Diver

"The retailers actually lose money in overall.--Remember, this is not a win-win batt ...
colderdown 发表于 2011-1-20 03:34

constock

谢谢

hunting

谢谢，，