Taking every single charge that they can....can is the key word. They can't write everything off else it has the potential to trigger capital calls if debt convenants/capital ratios are not maintained. And they still have all that off balance sheet crapola to write down...........many many qtrs ahead still with massive writedowns................I know very few here trade on fundamentals, but those who do should be advised that EVERY bank is going to be taking every single charge that they can right now.
Why?
Well, let's leave any government aid stuff aside for now. Look at things from a manager's standpoint.
You've got all the cover in the world to take losses now. Nobody will criticize you. If the stock goes down, well, that's a good time to re-negotiate your stock options portion of compensation. Then, next year, you're going to have a very easy time showing good year-over-year comparisons.
Now, I'm not the only guy to have figured this out, so expect many of these stocks to report "bad" earnings, and yet rally. Just know what it means and don't take the "bad news" at face value.
Mark
Heads Up on Banks
#31
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- Chartist
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Posted 21 January 2009 - 12:56 PM
#32
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- Traders-Talk User
- 287 posts
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Posted 21 January 2009 - 01:06 PM
wow!
there are some (a lot!) of galaxy class mega/permabears here who get angry when someone doesn't agree with the gloom-and-doom end of the world scenario!
Humble, this is a very very hilarious post to me...because werent you one of em around a couple of months back?!!....lol
...I can post several threads now showing this...not that it matters...
I'll shut up now...
.. but maybe you should stop 
for a while...maybe the bull will awake from its slumber! 
PS: I find your posts quite entertaining...lol...but well I think everyone is starting to wonder if you really do have money on the line here!
Well, I wish you all the best on your trade anyways...again!
PPS: Pls feel free to put me in your 'ignore box' with IT and Tor if I have offended you! lolz
Edited by PrincelyM, 21 January 2009 - 01:08 PM.
#33
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- Traders-Talk User
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Posted 21 January 2009 - 01:20 PM
#34
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- Traders-Talk User
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Posted 21 January 2009 - 01:32 PM
prince:
yes, i was VERY bearish and highly leveraged short into 10/10, the momentum low.
i admit it.
FROM 2003 as I gather
#35
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Posted 21 January 2009 - 01:47 PM
do you see how foolish this is and how it has nothing to do with trading?
Edited by humble1, 21 January 2009 - 01:51 PM.
#36
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- Traders-Talk User
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Posted 21 January 2009 - 02:13 PM
no, not really.
but here we go again and i really don't have time for it. i treated you with respect but i see that won't work so ...
... sounds like more of that IT.
right aren't i?
do you see how foolish this is and how it has nothing to do with trading?
Yeah I'll shut up now since I dont wanna get into a food fight
But if you do want to put me in the same box as IT, I'll be honoured since I respect IT....lol
To me its clear you are an just a wannabe...No good trader would hold thru this much drawdown and through the whole thing keep justifying it which is what is really intolerable...From what I remember you are posting these kind of bullish msgs from 920-940 range..we are now at 800....So its meaningless now...Sure market might bounce from here....But does that prove your point...Nope...A trader should have clear exit points...else you are not a trader....just a bag holder...Anyone with a little common sense can see that and will put you in the BOX.
Ok I am done..this is my last post criticizing you...till the next one ofcourse
.. no seriously I am done....Feel free to keep cheerleading...market will bounce from the 750-800 range...so if you bought here you will make money(I see that you bought calls right at the top!! )....in the end thats what counts..so as always I wish you all the best!
#37
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Posted 21 January 2009 - 04:05 PM
